The Billion Student Loan Settlement: Who Qualifies and How to Claim Your Cancellation

Quick answer: Quick answer: The $6 billion student loan settlement (Sweet v. Cardona) cancels federal student debt for borrowers whose schools misled them, and most eligible borrowers don't need to apply — the Department of Education will discharge the loans automatically, though some borrowers must check email and complete a few steps.

• Eligible borrowers had a borrower defense application on file by June 22, 2022.
• The settlement covers roughly 200,000 borrowers and discharges about $6 billion total.
• You should log into your StudentAid.gov account to confirm your status and contact your loan servicer.

If you attended a for-profit college and feel the school lied to you about job placement rates, accreditation, or the value of your degree, you have likely heard whispers about a $6 billion student loan settlement. That settlement is real, and it has already erased debt for many people. But the process for claiming your cancellation can feel confusing, especially if you are not sure whether you are included.

The short version is this: the federal government agreed to cancel student loans for borrowers who were cheated by their schools. This came after years of lawsuits. If you qualify, your debt is wiped out, and any payments you made on those loans may be refunded.

But there are deadlines, email notices, and some paperwork involved — and you need to know the exact steps to make sure you don't miss your shot. This article walks you through everything, from how to check your eligibility to how the outcome compares with other forms of relief.

Before we dive in, a quick note: this is general information, not legal advice or a substitute for talking to the Department of Education or a student loan counselor. Your situation is unique, so use this guide as a starting point, not a final verdict.

What exactly is the $6 billion student loan settlement?

The settlement comes from a lawsuit called Sweet v. Cardona. It was filed by borrowers who said their schools made false promises about job placement, transferability of credits, or the quality of their programs.

The federal government agreed to settle those claims, putting aside roughly $6 billion to cancel federal student loan debt for about 200,000 borrowers.

The settlement was approved in 2022, and the first discharges started in 2023. Borrowers in the settlement class attend or attended a list of more than 150 schools — many of them for-profit colleges — named in the lawsuit. If you are in that group, you did not need to file a brand-new application just to get the settlement.

Most discharges happened automatically.

Why the lawsuit took so long

The borrower defense rule existed for years before the Sweet case was filed. Historically, very few applications were approved. Borrowers waited years for answers while interest continued to pile up on their accounts.

The Sweet v. Cardona case challenged that delay. The named plaintiffs argued that the Department of Education was sitting on legitimate claims.

The settlement forced the government to either approve those claims or give borrowers a fair review within a set timeline.

What the settlement did not do

The settlement did not cancel all student loans. It did not apply to private student loans, and it did not forgive debts for every borrower who attended a for-profit school. The cancellation was limited to people who had already filed a borrower defense claim by the cutoff date and whose school appeared in the class definition.

If your loan is a Federal Family Education Loan (FFEL) held by a private lender, the treatment can be different. Those loans may not receive the automatic discharge even if your claim is valid. You may need to consolidate them into a Direct Loan first to qualify for borrower defense relief, though consolidation has consequences you should weigh carefully.

Who qualifies for student loan settlement debt cancellation?

There are two main groups of people covered by the settlement. Understanding which group you are in will tell you what you need to do next.

Group 1: The automatic discharge group

You are in the automatic discharge group if you submitted a borrower defense application on or before June 22, 2022, and you attended one of the schools on the settlement's list. For these borrowers, the Department of Education reviews the application and discharges the loan without you taking any extra steps. No need to reapply.

Group 2: The decision group

You are in the decision group if you applied for borrower defense before the deadline, but your application was previously denied or was still pending when the settlement was announced. You will receive a notice telling you that you can either accept the settlement's terms or request a new decision. You have to respond within a specific time window.

If you ignore the notice, you may still get the discharge, but the terms are less favorable — so it's important to read every message carefully.

If you never filed a borrower defense claim, you are not automatically in the settlement. But you could still qualify for a discharge by filing a new borrower defense application now. The settlement covers a specific set of claims, but the underlying program remains open to all federal student loan borrowers who believe their school defrauded them.

How to confirm your group

You can confirm your group by logging into StudentAid.gov and checking the messages section of your dashboard. The Department of Education sent class notices to the email address on file. If you have changed email addresses, you may need to contact the settlement administrator directly.

The borrower defense status page on StudentAid.gov will show your application status. You may see the word "pending," "approved," "denied," or language specific to the Sweet settlement. Take a screenshot of that page before you call anyone, so you have a record of what you saw and when.

What if you are not sure your school qualifies?

A list of more than 150 schools was included in the settlement documents. The list includes colleges such as Corinthian Colleges, ITT Technical Institute, DeVry University, and many other for-profit institutions. However, the list has been updated over time, so guessing is not enough.

You can check the official settlement website or call the Department of Education's borrower defense unit. If your school is not on the list, you can still file a new borrower defense application. The settlement list protects certain forms of group discharge, but an individual application may still succeed if you can prove misconduct.

How to claim your cancellation: step-by-step process

The good news is that for most people, claiming the settlement requires far less work than they expect. Follow these steps in order, and keep a record of everything you do along the way.

1. Log in to your StudentAid.gov account. Use the same username and password you've always used. If you cannot get in, use the account recovery tools right away — you need access to this account.
2. Check your email inbox and spam folder. The Department of Education and your loan servicer sent emails to borrowers in the settlement class. Search for phrases like "Sweet v. Cardona" or "borrower defense" to make sure you didn't miss a notice.
3. Read any notice you find carefully. The notice will tell you whether you are in the automatic discharge group or the decision group. It will also give you a deadline for responding if you need to make a choice.
4. If you are in the decision group, respond within the deadline. You will have a choice: accept the settlement terms or request a fresh review of your borrower defense application. Choosing the settlement is usually the simpler path, but read the terms before you decide.
5. Complete a new borrower defense application if you are not in the settlement. Go to studentaid.gov/borrower-defense and fill out the form. You will need to describe how your school misled you and upload any supporting documentation.
6. Watch your loan balance. Discharges happen in waves. It can take several months for the Department of Education to notify your servicer, and then another month or more for the balance to disappear from your credit report.
7. Contact your loan servicer if you see any problems. If your servicer continues to send bills or says you are in default after your discharge was approved, call them directly and reference your borrower defense case number.

Keep copies of every email, letter, and screen capture. If something goes wrong — say, a payment is taken after your discharge date — you will need those records to get a refund.

What to do if you cannot access your StudentAid.gov account

If you no longer have access to the email address associated with your FSA ID, visit the Federal Student Aid website and use the account recovery options. You will likely need to verify your identity with your Social Security number and answers to security questions.

Do not create a second FSA ID while your original account is locked. Creating a new account can delay the recovery process and confuse your loan records. Call the Federal Student Aid Information Center at 1-800-433-3243 if the online recovery process fails.

What happens after you respond to a Sweet settlement notice?

Once you submit your response, the Department of Education will review your file. If you chose the settlement, you should receive a letter confirming your discharge. That letter will list the loans being discharged and explain how refunds will be issued.

The actual discharge can take a few weeks to a few months. During that time, you do not have to make payments on the loans covered by the settlement. If your servicer says payments are still due, ask for a forbearance or administrative deferment while the discharge is processed.

If the settlement didn't cover you, what now? Borrower defense still exists

Missed the June 2022 deadline? You are not out of luck. The borrower defense to repayment program is still open.

This is the same legal framework that created the settlement. If your school misrepresented something material and you relied on that false promise, you can submit your own application at any time.

The catch is that the approval rate for post-settlement applications is lower, and the processing takes longer. The Department of Education evaluates each case individually. You will need evidence such as advertisements, emails, brochures, or court records showing what the school promised and what actually happened.

The settlement was a one-time blanket cancellation for thousands of borrowers; a new borrower defense claim is more like asking the government to hear your particular story.

If you decide to apply, do not pay anyone to file the forms for you. The application is free, and filing it yourself is not complicated.

What counts as school misconduct in a borrower defense claim?

Borrower defense is not for borrowers who simply chose a bad major or struggled to find a job. The claim must be based on a misleading statement or omission that meets a legal standard. The school must have made a substantial misrepresentation about something important, and you must have relied on it when you enrolled or continued attending.

• Job placement rates that were completely made up.
• Claimed accreditation that the school did not actually have.
• Promises that credits would transfer to another school when they would not.
• Misleading information about how much you would earn after graduation.
• Failure to disclose that a program was not licensed or approved by the state.
• High-pressure recruitment tactics that hid the true cost of the program.

For example, imagine a borrower who enrolled in a paralegal program because the school promised a 95% job placement rate. After graduation, the borrower discovers the school counted graduates who worked in retail or who were still unemployed as "placed." That evidence could support a borrower defense claim. But the outcome is never guaranteed, and the Department of Education will look at the full record.

How long does a new borrower defense application take?

There is no set answer. Some applications are processed within a few months, while others have taken years. The Department of Education has been under pressure to speed up processing, but the volume of claims is high.

You can check the status of your application by logging into StudentAid.gov and visiting the borrower defense page. If your application is in a processing group, you may see a date that estimates when a decision will be made. Those dates are not deadlines for you; they are internal targets.

Debt settlement vs debt consolidation: which is right for your student loans?

Once people learn about student loan forgiveness, they often wonder how it compares with other debt relief options. Two of the most common alternatives are debt settlement and debt consolidation. They sound similar, but they work very differently — especially with federal student loans.

Debt settlement means negotiating with a lender to accept less than the full amount you owe. That can work for private loans, credit cards, and medical bills. But with federal student loans, the government rarely agrees to settle for less than the full balance.

There are hardship programs, but outright settlement for pennies on the dollar is not typical. In the Sweet v. Cardona case, the discharge happened because of fraud, not because of a financial hardship negotiation.

Debt consolidation is different. With a federal Direct Consolidation Loan, you combine multiple federal loans into one and get a single monthly payment. That does not reduce what you owe, but it can make the payments easier to manage.

You should also know that consolidating your loans may restart the clock on income-driven repayment forgiveness, so think hard before you consolidate.

Which should you choose? If you qualify for the settlement or borrower defense discharge, take that first. If you do not qualify, consolidation might help you streamline payments, while settlement is usually a poor fit for federal loans. Your best move is to talk to a counselor before picking either path.

When consolidation can hurt your settlement chances

If you are eligible for the Sweet settlement, consolidating your loans before the discharge is processed could cause complications. The Department of Education may need to track the original loans, and a new consolidation loan can create a delay.

You should not consolidate a loan that is already approved for borrower defense discharge. Wait until the discharge goes through. If you have other unrelated federal loans, you can consolidate those separately after the settlement is complete.

Why debt settlement is rarely used for federal student loans

Federal student loans are backed by the government, and collection powers are strong. The government can garnish wages, withhold tax refunds, and reduce Social Security benefits. Because of that, there is little incentive to accept a discounted payoff.

Private lenders are more flexible, but even then, debt settlement should be a last resort. If you stop making payments to save up a settlement offer, your credit score will plummet. Creditors may also add fees and interest, making the final payoff higher than you expected.

Debt management vs debt settlement: what each one means

Many people confuse debt management plans with debt settlement, especially when they see ads for "debt relief." Let's clear that up.

Debt management program vs debt settlement

A debt management program (DMP) is run by a nonprofit credit counseling agency. The agency negotiates with your creditors to lower your interest rates and fees, and then you make a single monthly payment to the agency, which sends the money to your creditors. You still repay the full amount, but the reduced interest makes it easier.

Your credit is not wrecked because you are paying as agreed.

Debt settlement, on the other hand, involves stopping payments and letting debt pile up while the settlement company negotiates. The company usually asks you to deposit money into a dedicated savings account for months before making an offer. That can destroy your credit score and sometimes leads to lawsuits from creditors.

Debt management plan vs debt settlement

The core difference is simple: a debt management plan is about repaying what you owe with friendlier terms, while debt settlement is about paying less than you owe and taking the credit hits. For federal student loans, debt management plans do not apply directly, but you can use the same philosophy with income-driven repayment, which caps your monthly payment based on income.

Which is better? If you can pay the full balance with a lower interest rate, choose a debt management program. If you truly cannot repay and your debt is overwhelming, settlement might be a last resort.

But for student loans, always exhaust income-driven repayment, deferment, and forbearance first.

Can a debt management plan include student loans?

Most nonprofit credit counseling agencies focus on unsecured consumer debt like credit cards and personal loans. Federal student loans are usually excluded because they already offer flexible repayment options.

Private student loans may be included in a debt management plan if the lender agrees to modify the terms. However, not all private lenders participate. You will need to provide the counseling agency with a copy of your loan agreement and your latest billing statement so they can make a request.

Income-driven repayment as a debt management strategy

For federal student loans, income-driven repayment is often the closest thing to a debt management plan. Your payment is based on your income and family size, and after 20 or 25 years, any remaining balance is forgiven.

The key is that you must recertify your income every year. If you miss the recertification deadline, your payment can jump back to the standard ten-year amount. Set a calendar reminder at least 30 days before the due date to update your income information with your servicer.

Credit counseling vs debt settlement

Before you sign up with a for-profit settlement company, consider credit counseling. Credit counselors are nonprofit professionals who look at your whole financial picture and help you create a budget, understand your options, and sometimes set up a debt management plan. They are transparent about fees and will never promise to erase your debt instantly.

Debt settlement companies, by contrast, often charge large fees — sometimes 15% to 25% of the debt you enroll. They also make bold promises about reducing what you owe, but those promises are not guaranteed. The Federal Trade Commission requires settlement companies to explain the risks, but the reality is still that many clients drop out before completion.

If your main debt is federal student loans, credit counseling can help you apply for income-driven repayment or a public service loan forgiveness program. Settlement is rarely the answer for federal loans.

How to find a legitimate credit counseling agency

• Look for agencies that are members of the National Foundation for Credit Counseling (NFCC).
• Check if the agency is accredited by the Council on Accreditation.
• Ask for a written fee schedule before you provide any personal information.
• Verify that the agency offers free or low-cost initial counseling sessions.
• Avoid agencies that pressure you to enroll during the first phone call.

A good counselor will review your budget, your student loans, and your other debts. They will explain the costs of a debt management plan and compare it with alternatives. If the plan does not make financial sense, they should say so honestly.

Bankruptcy versus debt settlement for student loans

Bankruptcy is often called the nuclear option, and for student loans, it rarely leads to discharge. To get student loans wiped out in bankruptcy, you have to file a separate lawsuit called an adversary proceeding and prove "undue hardship." Courts interpret that very narrowly. So for most people, bankruptcy is not a realistic path to canceling federal student loans.

Debt settlement, as we covered, is also a poor fit for federal student loans. But what about private student loans? Private lenders are sometimes more willing to settle because they want to avoid a default or collection.

Still, if you stop paying to trigger a settlement, you risk being sued.

Bankruptcy versus debt settlement — which harms your credit more? Bankruptcy stays on your credit report for up to 10 years. Debt settlement can remain negative on your report for 7 years from the first missed payment.

The choice depends on your total debt, your income, and whether you have assets. Talk to a bankruptcy attorney before making any decision, and never assume either option will fix student loans quickly.

What is undue hardship in bankruptcy?

The standard for "undue hardship" varies by court, but most judges use some version of the Brunner test. Under that test, you must show that you cannot maintain a minimal standard of living if you pay the loans, that your financial situation is unlikely to improve, and that you have made good faith efforts to repay.

The test is hard to meet. Borrowers with serious disabilities or long-term unemployment have succeeded, but borrowers who simply dislike their jobs rarely do. If you are considering bankruptcy, you need an attorney who specializes in student loan law and knows the local court's interpretation.

When private student loan settlement could make sense

Private student loans have fewer consumer protections than federal loans. There is no income-driven repayment and no borrower defense program. If you have defaulted and the lender is considering legal action, they may accept a lump-sum settlement for less than what you owe.

Get any settlement offer in writing before you pay. Make sure the agreement says the debt is "settled in full" and that the creditor will not sell the remaining balance to a collection agency. If the offer is only a payment plan, the account may still be reported as delinquent.

How to pay off credit card debt without a loan

It is not uncommon to carry both student loans and credit card balances. If the student loan settlement clears your federal debt, you still might be stuck with high-interest cards. The good news is you don't need to take out another loan to handle them.

Start by listing every credit card balance, its interest rate, and its minimum payment. Then choose either the debt snowball method (smallest balance first) or the debt avalanche method (highest interest rate first). Both work — the key is to pick one and stay consistent.

Another approach is to call your credit card issuer and ask for a lower interest rate. Many issuers have hardship programs, and even a 4% rate reduction can save hundreds of dollars over a year. Remember, the money you save on student loan payments after a discharge can be redirected to these cards.

How to pay off credit card debt without a loan often comes down to cutting expenses, selling things you no longer need, or picking up a side gig. A small balance transfer to a 0% intro APR card can help, but only if you can pay it off before the promotional period ends. Avoid using a credit card cash advance to pay another card — that just adds more interest and fees.

Using the snowball method after student loan discharge

Once your student loan is gone, apply the full monthly payment you used to make toward your smallest credit card balance. Continue making minimum payments on every other card. When the smallest card is paid off, roll that payment into the next smallest card.

For example, suppose you were paying $300 per month on student loans. After the discharge, you steer $300 toward a card with a $1,500 balance. With that payment plus the minimum, the balance could be cleared in about five months, depending on interest charges.

The result gives you an early win and keeps you motivated.

How to ask a credit card company for a hardship plan

Call the number on the back of your card and ask to speak with the hardship or financial assistance department. Explain that your student loan was discharged and that you need temporary relief on your card. Be specific about what you can afford.

Many issuers will lower your interest rate for six to twelve months if you agree to close the card or stop using it. You may also be moved to a fixed payment plan that ends after a set period. Get every term in writing and confirm that the reduced interest applies to all new charges you might make.

Protecting yourself from student loan settlement scams

Whenever the government announces a big student loan relief program, scammers follow. You may hear about fake "Settlement Application Specialists" who charge a fee to "secure your place" in the $6 billion settlement. These people are not associated with the Department of Education, and they cannot expedite anything.

The real process is free. You do not need to pay anyone to log into StudentAid.gov or to file a borrower defense application. If someone calls or texts you demanding payment for "processing," hang up.

The Department of Education will never contact you by phone to threaten legal action unless you are already in default collection with a specific debt collector.

Check your email for official notices, and when you click links, make sure they point to studentaid.gov or your servicer's official site. If you are unsure, open a separate browser window and type the address directly. Protect your banking and personal information, because a scammer only needs your FSA ID credentials to take over your loan account.

Common signs of a student loan scam

• An unsolicited call or text that mentions the $6 billion settlement.
• A request for a monthly "processing fee" or "administrative fee."
• Pressure to act immediately or risk losing your forgiveness.
• Demands for your FSA ID password or banking login credentials.
• Promises of loan forgiveness "no matter what" in exchange for payment.
• Fake websites that look like StudentAid.gov but have a slightly different web address.

The Federal Trade Commission and the Department of Education do not charge for loan forgiveness. If you see an ad on social media offering "Sweet v. Cardona help," report it to the FTC at reportfraud.ftc.gov.

Do not click the ad or provide personal information through a chat window.

What to do if you already paid a scammer

If you gave money to someone who claimed they could get you into the settlement, contact your bank or credit card company immediately. Ask them to reverse the charge and block future payments. You should also place a fraud alert on your credit reports and change your FSA ID password.

Report the scam to the Department of Education's Office of the Inspector General and to your state attorney general. Keep copies of every message, payment receipt, and phone number. That information can help investigators stop the scammers from targeting other borrowers.

What to do if your discharge is approved but your loan is still showing

Even after the Department of Education approves a discharge, your credit report might still show the loan for a while. Creditors often update your credit file on their own schedule, so you can wait 30 to 60 days before seeing the change. If it shows a "closed" or "discharged" status, that's correct.

If it still shows a balance, contact the credit bureaus directly.

You can also ask your loan servicer for a discharge confirmation letter. Keep that letter in a safe place. If a future lender asks about your credit history, the letter will prove the loan was not written off — it was canceled for legal reasons.

That matters if you later apply for a mortgage or car loan.

How to dispute an incorrect student loan balance on your credit report

1. Get a copy of your credit report from AnnualCreditReport.com.
2. Highlight the student loan account that should have been discharged.
3. Write a dispute letter explaining that the balance is zero or was discharged under Sweet v. Cardona.
4. Include the discharge letter from the Department of Education or your servicer.
5. Send the dispute to the credit bureau that published the incorrect information.
6. Follow up after 30 days if you have not received a response.

The credit bureau must investigate your dispute unless it determines that your claim is frivolous. If the investigation does not remove the balance, you can add a statement to your credit file explaining the situation. A statement does not change your score, but it can help a human underwriter understand the issue.

How the $6 billion settlement amount is split

The $6 billion figure applies to the total principal and interest discharged under the Sweet v. Cardona settlement. Individual borrowers had different balances.

Some had $10,000 wiped out; others owed over $100,000. The settlement also requires the Department of Education to send refunds for payments made after certain dates.

Let's be clear: not every borrower receives an equal share. The total number of borrowers included is approximately 200,000, but that number grew as the settlement was implemented. If you are eligible, your discharge is based on your specific loan balance.

You do not get to pick how much is canceled.

What about refunds of payments you already made?

Borrowers in the settlement class are entitled to refunds for payments made on the discharged loans after the borrower defense application was filed. The exact refund date is listed in your settlement notice. The Department of Education will calculate the refund automatically, and the money is typically sent by paper check or direct deposit.

You do not need to call to request the refund, but you should confirm that your direct deposit information is current in your StudentAid.gov profile. If you have moved or changed bank accounts, update the details as soon as possible so your refund is not delayed.

How interest and fees are handled in the discharge

The discharge includes unpaid interest that accrued on the covered loans. It also includes collection fees if the loan was in default before the discharge. That means your final balance should reflect the total amount the government was trying to collect, not just the original principal.

If you owe multiple loans and only some are covered by the settlement, the others remain active. Your servicer should send an updated billing statement explaining which loans were canceled and which loans still require payment. Read that statement carefully, and do not assume all your debt is gone.

Steps to take right now, even if you are not sure you qualify

If you read all of this and still feel uncertain, start with these three actions in the next 24 hours. First, log in to StudentAid.gov and check your dashboard for any messages or alerts. Second, search your email for "Sweet v.

Cardona" or "borrower defense" to find any official correspondence. Third, note your loan servicer's phone number and any case numbers you find. With that information in hand, you can call the servicer or the Federal Student Aid Information Center and ask directly about your borrower defense status.

Build a simple record of your borrower defense timeline

Write down the date you attended the school, the date you filed your borrower defense application, and the date of any denial or approval letter. Keep that timeline in a folder with your admissions paperwork, loan statements, and evidence of the school's false promises.

You do not need a lawyer to create this file, but the record will be useful if you speak with a student loan counselor. It will also help you calculate the amount of payments you made after your application was filed, which is important for your refund request.

Set a weekly follow-up reminder

Student loan discharges do not happen instantly. Check your StudentAid.gov account once a week and look for changes in your loan status. If you see a message that says "dispute in review" or "application under review," do not panic.

Write down the date and continue waiting.

If nothing changes after 90 days, call your servicer and ask for a supervisor. Mention the Sweet v. Cardona settlement and ask them to provide a written update.

You may be placed on a callback list, but do not let a roadblock stop you from following up.

Frequently asked questions about the Sweet v. Cardona settlement

Do I need to file a new application to get the settlement?

No. If your borrower defense application was on file by June 22, 2022, you do not need to file anything new for the automatic discharge group. The Department of Education already has your application and your school information.

Borrowers in the decision group may need to respond to a notice. If you are not in either group, you should file a new borrower defense application if you believe your school misled you.

Will the settlement cover Parent PLUS loans?

Yes, Parent PLUS loans can be covered if the loan was taken out to cover attendance at a school on the settlement list and the borrower filed a borrower defense claim. The parent is the borrower, so the parent's application is the one that counts.

If the student attended multiple schools, you need to identify which loan corresponds to which school. The settlement only discharges loans related to the school that was the subject of the borrower defense claim.

What if my loans are in default?

Defaulted federal student loans can still be discharged under the Sweet settlement. The discharge will remove the debt and the default from your record. You may also receive a refund of certain payments, including payments made through wage garnishment after the application date.

Do not pay a collection agency that asks you to enter a rehabilitation program to "qualify" for the settlement. The settlement applies to defaulted loans without rehabilitation. A legitimate collector will not charge you to process a borrower defense discharge.

Does the settlement affect my taxes?

Normally, canceled debt is treated as taxable income. The Sweet v. Cardona settlement, however, was created under a specific statutory authority, and borrower defense discharges are generally not taxable at the federal level.

State tax treatment can vary.

You may receive a 1099-C form if a lender reports the canceled debt to the IRS. If you do receive one and your loan was discharged through borrower defense, contact a tax professional to determine whether you need to include it in your income. Many states follow the federal rule, but not all do.

Key takeaways

• The $6 billion student loan settlement cancels federal debt for borrowers defrauded by their schools, and most eligible borrowers do not need to apply.
• Check your StudentAid.gov account and email for notices about the Sweet v. Cardona settlement, because the decision group has deadlines to respond.
• If you missed the settlement, you can still file a borrower defense application for free at studentaid.gov.
• The settlement is not debt settlement in the traditional sense. Debt settlement, debt management, credit counseling, and bankruptcy all work differently, and each should be considered carefully based on your specific loans.
• Combine any student loan relief with a smart plan for credit card debt, like the snowball or avalanche method, so you are not caught in a cycle of high-interest payments.

See also: nonprofit debt consolidation