Student-loan borrowers in public service are trapped with debt that 'should be forgiven,' a new lawsuit says
The American Federation of Teachers sued Trump for stalling student-debt relief for thousands of borrowers in Public Service Loan Forgiveness.
A new lawsuit against the Trump administration claims the Department of Education is mishandling Public Service Loan Forgiveness (PSLF) for thousands of student-loan borrowers. The American Federation of Teachers (AFT) has filed a lawsuit alleging the department has failed to process 90,000 buyback applications and illegally rescinded payments, trapping borrowers in debt despite qualifying for relief.
The lawsuit, seeking class-action status, includes Donald Knierim, who faced 15 rescinded payments after being notified he had achieved PSLF. The AFT's senior counsel, Laura Dismore, emphasized the department must enforce the rights of public service workers. The Department of Education did not immediately respond to a request for comment.
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