Federal Judge Rejects Extension for Borrower Defense Settlement Decisions

December 13, 2025 - 20:59

In a significant ruling, a federal judge has denied the U.S. Department of Education's request for an 18-month delay in processing borrower defense claims. The decision comes as the department faces pressure to fulfill its commitment to provide timely resolutions for borrowers seeking relief from federal student loans. Under the terms of the agreement, borrowers were assured that decisions regarding their claims would be made or automatic relief granted by the end of January.

The judge's ruling underscores the urgency of addressing the claims made by borrowers, many of whom have been waiting for years for a resolution. The borrower defense program was established to protect students who were misled by their educational institutions. With the deadline approaching, advocates for borrowers are hopeful that this ruling will expedite the process and ensure that those affected receive the relief they are entitled to.

This decision marks a pivotal moment in the ongoing efforts to support student loan borrowers and highlights the judicial system's role in holding the Department of Education accountable for its obligations.