The American Federation of Teachers initiated legal action against the Trump administration’s Department of Education on Friday, claiming that Secretary Linda McMahon has mismanaged the Public Service Loan Forgiveness program and prevented eligible borrowers from receiving debt relief they are entitled to under law.
The lawsuit, filed in U.S. District Court for the District of Columbia, centers on allegations that the department has incorrectly calculated borrowers’ payment histories and failed to properly credit time served in qualifying employment. The PSLF program, established in 2007, permits certain employees in nonprofit and government sectors to have their federal student loans canceled following 120 qualifying monthly payments. During the previous administration, the program was expanded with a buyback initiative that allows borrowers who have completed 120 months of qualifying employment to retroactively claim credit for months lost due to forbearance or deferment.
According to the legal filing, approximately 88,000 borrowers had pending buyback applications as of spring, awaiting decisions that have not been processed. Additionally, the plaintiffs contend that the Education Department reduced qualifying payment counts for some borrowers earlier in the year without notification or justification, extending the timeline for loan forgiveness eligibility.
AFT President Randi Weingarten, identified as the lead plaintiff, stated that the lawsuit seeks to compel the secretary to fulfill her obligation to support teachers, nurses, and first responders. Co-plaintiff Elizabeth Schoepflin, a speech-language pathologist from New York, described having earned loan forgiveness credit removed without explanation.
An Education Department spokesperson responded by characterizing the payment count adjustments as corrections to “coding errors” from the previous administration, stating the changes ensure borrowers receive accurate credit for qualifying payments.
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