A federal appeals court rejected the U.S. Department of Education’s request to delay decisions on borrower defense cases, keeping the agency’s obligations tied to an earlier settlement. The dispute centers on tens of thousands of pending applications and claims that students have waited too long for debt relief decisions. Under the 2022 settlement in Sweet v. McMahon, the Department agreed to either timely decisions or automatic relief, but the agency sought an 18-month extension for a large tranche. The court concluded the agency failed to show circumstances had shifted enough to justify changing the settlement terms. Higher education leaders should anticipate continuing volatility in institutional risk posture and financial-aid planning for impacted students, especially as courts direct the Department to accelerate relief and as student groups press for compliance.