200,000 Borrowers Await Ninth Circuit Ruling on $12 Billion Student Loan Settlement

200,000 Borrowers Await Ninth Circuit Ruling on $12 Billion Student Loan Settlement

Author: The College Investor March 24, 2026 Duration: 7:38

A federal appeals court heard arguments on Friday over whether the Education Department can further delay a court-approved settlement that promises loan discharges, payment refunds, and credit report corrections to more than 200,000 student loan borrowers who say they were defrauded by their colleges.

The case, Sweet v. McMahon, has been working through the courts since 2019 (as a result, the case has changed names a few times: Sweet v. DeVos and Sweet v. Cardona). The settlement, valued at up to $12 billion, set firm deadlines for the Department to process borrower defense to repayment applications. The Department has missed those deadlines and asked for extensions multiple times. So far, those requests have been denied.

During Friday’s hearing before the Ninth Circuit Court of Appeals, Judge Kim McLane Wardlaw offered a blunt assessment: “The time for negotiating is over. You missed your deadline.”

The court is now considering the Department’s motion to stay the settlement while it appeals.


Hosted by Robert Farrington, founder of The College Investor and a recognized Millennial Money Expert, The College Investor Audio Show transforms the website's most valuable insights into a daily, conversational format. This podcast directly tackles the financial hurdles unique to a generation, moving beyond theory into practical, actionable strategies. Each episode focuses on the core pillars of modern financial health: systematically eliminating student loan debt, demystifying the fundamentals of investing, and creating actionable paths to increase your income. The goal is clear: to guide you from a place of debt management to one of confident wealth building. You'll hear straightforward advice on navigating repayment plans, understanding where and how to start investing even with limited capital, and exploring side hustles or career moves that make a real difference. It’s a resource for anyone feeling stalled by their loans and eager to lay a solid foundation for their future. Tune in for a no-nonsense take on millennial money, where complex topics are broken down into manageable steps you can apply immediately.
Author: Language: English Episodes: 100

The College Investor Audio Show
Podcast Episodes
College Pricing Black Box: How Colleges Inflate the Cost of a Degree [not-audio_url] [/not-audio_url]

Duration: 9:08
The price a college advertises and the price a family actually pays out of pocket are two very different numbers, and the distance between them is rarely an accident. Behind the published sticker price sits a system of s…
Mizzou Tuition Rising 4% This Fall After Board Of Curators Vote [not-audio_url] [/not-audio_url]

Duration: 5:33
The University of Missouri System Board of Curators voted unanimously Thursday to raise undergraduate tuition 4% across all four campuses for the 2026-27 academic year. Graduate tuition will rise 3%.The increase hits res…
Wage Garnishment On Defaulted Student Loans Restarts This Fall [not-audio_url] [/not-audio_url]

Duration: 6:42
The U.S. Department of Education, with the Department of Treasury, plans to resume administrative wage garnishment on defaulted federal student loans this fall, restarting involuntary collections after a months-long paus…