The U.S. Department of Education is set to erase $11 billion in federal student debt for more than 170,000 additional borrowers who say they were defrauded by predatory for-profit schools. The relief follows an appellate court ruling rejecting the department’s request for more time to review claims. The underlying class action was filed during the first Trump term, with a 2022 settlement that already relieved nearly 300,000 plaintiffs. The settlement required continued adjudication of newly filed fraud claims, with an early-2026 deadline—if the claims were not resolved by then, they were automatically approved. For colleges and policymakers, the development underscores the continued downstream effects of federal enforcement and court supervision of past student-aid and institutional compliance failures.