Student-loan borrowers in public service are trapped with debt that 'should be forgiven,' a new lawsuit says
The American Federation of Teachers has filed a lawsuit against the Department of Education regarding delays and mismanagement of the Public Service Loan Forgiveness program. The suit claims that thousands of public service workers are being unfairly trapped in debt due to administrative failures.
Why it matters
This legal action highlights ongoing systemic issues in government student-loan relief programs that affect thousands of public sector employees.
A new lawsuit against the Trump administration targets delays in processing Public Service Loan Forgiveness for thousands of student-loan borrowers. Chip Somodevilla/Getty Images The Education Department is facing a new lawsuit over the Public Service Loan Forgiveness program. The lawsuit said the department is failing to process buyback applications and is illegally rescinding borrowers' payments. These delays are forcing borrowers to pay off loans that should be forgiven, the lawsuit said. The Trump administration is facing another lawsuit over claims it's mishandling student-loan forgiveness for thousands of borrowers. On Friday, the American Federation of Teachers President Randi Weingarten filed a lawsuit against the Department of Education over stalled debt relief for borrowers pursuing Public Service Loan Forgiveness , which forgives student debt for government and nonprofit workers after 10 years.
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