This week, the parties in Sweet v. Cardona filed a motion with the court that they had reached a settlement in principle to resolve the case. As a quick refresher, this case challenged 1) the Department’s failure to issue timely adjudications on borrower defense claims and 2) the Department’s blanket denials of thousands of borrower defense claims during the DeVos administration.
We will learn more in the coming days about the contents of the settlement, but I have every reason to be optimistic that it will be pretty darn good. So stay tuned.
In the meantime, if you’ve attended a for-profit school and was defrauded in any way, please file a Borrower Defense to Repayment application here: https://studentaid.gov/borrower-defense/
We are continuing to be concerned that applications sent by mail may not be recorded by the Department of Education despite proof of receipt. It’s best to file them online. We have several tips to offer when filing this to save time etc. Please see our prior blog: https://www.tampabankruptcylawyerblog.com/borrower-defense-to-repayment-update/