Every dollar amount and date on this page is quoted from the official settlement document.
McMahon False Advertising Settlement
Court case: Sweet, et al. v. McMahon, et al.
Borrowers who filed a Borrower Defense application on or before June 22, 2022 get their targeted loans discharged under this settlement.
Official eligibility wordingBorrowers who submitted a Borrower Defense application on or before June 22, 2022, plus post-class applicants who applied June 23 through November 15, 2022, and those who received form denials between December 2019 and October 2020. Checked against the official settlement source by SettleSignal on June 19, 2026.
Key facts
- Who may qualify You may qualify if you submitted a Borrower Defense application on or before June 22, 2022, or applied between June 23 and November 15 as a post-class applicant.
- Estimated payoutFull Settlement Relief includes: (i) discharge of the outstanding loans that were the subject of your borrower defense application, (ii) refunds of any amounts you paid to the federal government toward those loans, and (iii) deletion of the credit tradeline
- What you needNothing to file — payment is sent automatically to people the administrator identifies.
- CourtU.S. District Court, Northern District of California
How hard is this claim to file?
Watch out for
- Balance fluctuations during discharge processing are described as normal; do not panic if your balance changes unexpectedly before discharge is complete.
- The Department of Education has attempted multiple delays through appeals; existing deadlines and rights remain in effect as of the information in the settlement documents, but the case is still being litigated.
- Relief must be completed within one year of receiving your eligibility notice — track the date you receive that notice.
- Post-class applicants who attended Exhibit C schools and non-Exhibit C schools are on different timelines with separate deadlines that have already passed — if you missed the window to receive a notice, contact PPSL immediately.
We prepare — you file on the official site yourself. This is not legal advice and is not an eligibility decision; the administrator and court decide.
Verify it yourself
How we verified this record
- Payout details Jun 17, 2026
- Eligibility Jun 17, 2026
- Administrator Jun 17, 2026
- Court case Jun 17, 2026
- Payment status Jun 19, 2026
- 3 fields queued for re-check
4 official sources linked to this record.
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Eligibility summary Quoted in the official eligibility wording above ↑
Verified Jun 17, 2026
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Payment status
Payments started
Verified Jun 19, 2026
As of May 2025, over 271,000 borrowers have received settlement relief.
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Estimated payout
Full Settlement Relief includes: (i) discharge of the outstanding loans that were the subject of your borrower defense application, (ii) refunds of any amounts you paid to the federal government toward those loans, and (iii) deletion of the credit tradeline
Verified Jun 17, 2026
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Administrator
U.S. Department of Education (contact: sweet@ed.gov); Project on Predatory Student Lending (PPSL)
Verified Jun 17, 2026
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Court
U.S. District Court, Northern District of California
Verified Jun 19, 2026
Show all 5 more verified fields
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Automatic refund
Yes — automatic, no claim needed
Verified Jun 19, 2026
Automatic Relief Components: The settlement provides loan discharge, payment refund, credit correction, and federal aid restoration when deadlines are missed.
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Class period end
November 15, 2022
Verified Jun 17, 2026
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Court case number
19-cv-3674
Verified Jun 17, 2026
Case Number: No. 19-cv-3674 (N.D. Cal.)
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No-claim explanation
The settlement provides automatic loan discharge, payment refund, credit correction, and federal aid restoration; eligible borrowers receive relief notices without filing a claim.
Verified Jun 19, 2026
Automatic Relief Components: The settlement provides loan discharge, payment refund, credit correction, and federal aid restoration when deadlines are missed.
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Case name
Sweet v. McMahon (formerly Sweet v. Cardona and Sweet v. DeVos)
Verified Jun 19, 2026
Where to act
No claim form is needed — U.S. Department of Education (contact: sweet@ed.gov); Project on Predatory Student Lending (PPSL) issues this refund automatically; confirm your eligibility and contact details on the official source.
No claim needed — payment is automatic
If you qualify, the settlement pays you automatically. There's nothing to file — just keep an eye on your mail or account around the payment date.
