A federal judge this week refused the Education Department’s request for an 18‑month delay in deciding borrower-defense claims tied to a landmark 2022 settlement, clearing the path for automatic relief for some applicants if the agency misses court deadlines. U.S. District Judge William Alsup denied an extension for claims filed by borrowers who attended 151 institutions the department identified as having indications of substantial misconduct. The decision stems from Sweet v. McMahon, a class-action lawsuit alleging the Education Department improperly delayed decisions on borrower-defense applications. Under the settlement, the department committed to resolving separate groups of claims by set dates or providing automatic debt relief. The judge granted a limited extension to other borrowers until April 15 but left the most vulnerable group without additional leeway. Borrowers’ attorneys said the ruling pressures the department to finalize decisions by Jan. 28 for the highest-priority group; Education Department officials will now have to adjust compliance and adjudication plans under intensified court oversight.
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