UPDATE for Argosy – SF Bay Area Borrowers (Sweet v. Cardona / McMahon)
As of January 29, 2026, a major legal milestone has passed for Sweet v. McMahon (formerly known as Sweet v. Cardona and Sweet v. DeVos and referred to hereafter as “Sweet”) Exhibit C Post-Class Borrower Defense applicants. This includes those of us who attended Argosy University, which is specifically named on the Exhibit C list.
If you:
submitted a Borrower Defense application between June 23, 2022 and November 16, 2022 (inclusive),
attended Argosy or another Exhibit C school, and
your application was still in process (neither approved or denied) as of January 29, 2026 at 12:01 AM,
then under the Sweet case, your right to Full Settlement Relief was “vested” (translation: granted) automatically when that deadline passed. Full Settlement Relief (hereafter, “relief”) consists of loan discharge, credit repair, and refunds where applicable.
This is an enforcement of a final, binding court judgment. (read also Sweet v. McMahon Is About Discharge, Not Forgiveness)
What happens next
Under the terms of the Sweet settlement:
The Department of Education (DOE) now has 60 days to formally notify affected borrowers and begin implementation of full settlement relief
The DOE is responsible for directing and coordinating all relief, but the actual implementation — including loan updates, credit corrections, and refunds — is carried out by loan servicers, credit bureaus, and the Treasury based on DOE’s instructions.
The DOE then has up to 12 months from the date it notifies you of your vested right to ensure that your relief is completed.
That 12-month clock to complete your relief starts when the DOE notifies you of your vested right — not 12 months from the day when your right vested. So if you haven’t received communication yet, or aren’t sure whether they “know” you’re affected, it’s still very early in that timeline.
But what matters most is this:
If your Exhibit C Post-Class application remained in progress at at 12:01 AM on January 29, 2026, your legal right to relief attached automatically — whether or not they’ve taken action yet.
Legal context
Rights that have vested under a court order are much harder to undo.
That doesn’t mean the government won’t try — they’ve already tried just about everything.
But the legal terrain has now shifted:
Before Jan 29, the fight was about delaying the clock.
After Jan 29, it would require unwinding legal rights that already exist under a final judgment.
That’s a far more difficult legal challenge than the one they just lost in December.
What you can do right now
Document your status
Take screenshots of your Borrower Defense portal showing the application was still in process as of Jan 29 (with date/time if possible).
Save copies of the Sweet settlement and the final judgment (links below).
Keep everything together in a secure digital or physical file.
Remain in administrative forbearance if you are in it
No payments should be due.
No collections should occur.
Optional: Add a credit file statement (not dispute) with all three major credit bureaus — TransUnion, Equifax, and Experian — stating the following:
“Federal student loans subject to court-ordered discharge under Sweet v. Cardona; entitlement triggered January 29, 2026.”
This creates a timestamped record of your legal status while backend systems catch up.
What NOT to do (yet)
Don’t file credit disputes
Don’t call or message your loan servicer for updates
Don’t escalate to FSA or the Ombudsman
Don’t panic if balances still show
Processing and reporting lag behind legal reality. Premature disputes tend to get automatically rejected while systems update.
About credit scores
Yes, many borrowers are seeing score drops due to high balances still showing — even during forbearance.
It’s temporary. Once discharge is processed and balances drop to $0, credit scores typically rebound.
Bottom line
If you were an Argosy borrower (or from any Exhibit C school), and your Borrower Defense application was still in process at 12:01 AM on January 29, 2026:
Your right to relief has vested under a federal court order.
The Department of Education has 60 days to notify you, and 12 months from notification to implement.
The legal footing is stronger now than it was yesterday.
The best course of action right now is to document, wait, and avoid unnecessary noise while implementation catches up with the law.
References
Web Pages
Sweet v. McMahon Case Page [by Project on Predatory Student Lending]
IRS Moves to Prevent Defrauded Borrowers from Massively Overpaying Taxes [by Project on Predatory Student Lending]
Sweet v. McMahon Is About Discharge, Not Forgiveness [by Erin Findley, PsyD]
Case Documents
Sweet v. Cardona Settlement Agreement (including original Exhibit C List) [6/22/2022]
Updated Exhibit C list [8/9/2022]
Order Granting Final Settlement Approval [11/16/2022]
Author Note
Dr. Erin Findley is a licensed psychologist and a post-class member in Sweet v. McMahon. Although not a legal scholar, she has engaged extensively with several named plaintiffs and crafted this analysis with their input, drawing on guidance from the legal team. Her aim is to support accurate public understanding of the case and the nature of Borrower Defense discharge.
For media or advocacy inquiries, you may reach Dr. Findley at info@erinfindley.com
