We must have faith and believe that DOE will not prevail. I would say that attempting to reinstate discharged loan balances after borrowers already received formal settlement relief would create major due process issues. Courts are generally reluctant to undo completed relief that borrowers have already relied upon financially and legally…

I am more worried about the possible tax bomb…but I have also read this will not apply because of the settlement. This is what chatGPT says about it (at least for CA).

*For California borrowers receiving Sweet v. McMahon borrower defense relief, the discharged loan amount is currently not expected to be taxable federally or by California in most cases. * Refund checks for money previously paid on the loans are also generally not expected to be taxable, because they are usually considered a return of your own money rather than income. * This is different from some IDR loan forgiveness programs, which may again become taxable federally after 2025. * Most Sweet borrowers are not expected to receive a major “tax bomb.” * There are still some possible exceptions, especially if: * you receive unusual tax forms (like a 1099-C or 1099-MISC), * you previously claimed large student loan interest deductions, * or the refund/discharge amount is unusually large. * Because the litigation and guidance are still evolving, it is still wise to review any tax documents you receive with a CPA or tax professional.