Federal Appeals Court Erases $23 Billion in Student Loan Debt for 450,000 Borrowers

A federal appeals court ruling on July 17, 2026, in the case of Sweet v. McMahon, has resulted in the erasure of $23 billion in student loan debt for approximately 450,000 borrowers. These individuals were reportedly defrauded by false promises made by over 150 for-profit colleges, which used high-pressure tactics to target vulnerable populations.