Politics1 min read

Class action lawsuit blames Trump officials for student loan forgiveness delays

By · Published by Everything Blog

In short

The American Federation of Teachers filed a class action suit in the U.S. District Court for the District of Columbia on behalf of public service employees. Plaintiffs claim the Department of Education unlawfully blocked forgiveness under the 2007 program by lowering payment counts and stalling the PSLF Buyback initiative, which had 88,000 applications pending in the spring. In response, agency officials argue they are merely resolving coding errors from the Biden administration to ensure proper payment crediting.

Key points

  • Public sector employees are legally challenging federal reductions made to their earned q…: Public sector employees are legally challenging federal reductions made to their earned qualifying payment counts.
  • The Education Department maintains that current processing delays stem from fixing Biden-…: The Education Department maintains that current processing delays stem from fixing Biden-era coding errors on borrower accounts.
  • A labor union representing 1.8 million members is demanding immediate processing of debt…: A labor union representing 1.8 million members is demanding immediate processing of debt relief for eligible workers.

Sources checked by our analysis pipeline: 1

The American Federation of Teachers sued the Trump administration Friday, alleging it unlawfully blocked student loan forgiveness for tens of thousands of borrowers who qualify.

The plaintiffs argue in their lawsuit, Weingarten v. McMahon, filed in the U.S. District Court for the District of Columbia, that U.S. Department of Education Secretary Linda McMahon has mismanaged the popular Public Service Loan Forgiveness program by incorrectly counting borrower's payment timelines and not awarding people credit for time served.

PSLF, which President George W. Bush signed into law in 2007, allows certain not-for-profit and government employees to have their federal student loans canceled after 120 payments, generally paid over 10 years. The Biden administration later adapted the program, making it easier to qualify for it and clearing the way for more than 1 million borrowers to have already had their loans forgiven under the program.

"Secretary McMahon has flagrantly ignored her responsibility to help teachers, nurses and first responders," said AFT President Randi Weingarten, the lead plaintiff, in a statement. The other plaintiffs include AFT members and public service workers. The AFT is…

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