A federal appeals court rejected the U.S. Department of Education’s effort to delay decisions on borrower defense claims for tens of thousands of students, tightening deadlines created by a 2022 settlement in the Sweet v. McMahon case. The court said the agency failed to show changed circumstances that would justify moving the schedule for processing more than 250,000 applications. The ruling means the department must continue providing debt relief for a group of borrowers—over 170,000, according to the Project on Predatory Student Lending—who have waited for adjudication. The Education Department had completed only about 60,000 decisions by the original Jan. 28 deadline. This case has already reshaped enforcement of the borrower defense program, including through automatic relief tied to schools identified for misconduct. The decision last week further limits the Education Department’s ability to adjust compliance timelines without court support.