The American Federation of Teachers filed a class action lawsuit against the Trump administration’s Department of Education, challenging what it characterizes as unlawful obstruction of student loan forgiveness benefits. The case, filed in U.S. District Court for the District of Columbia, names Education Secretary Linda McMahon as the defendant and alleges systemic mismanagement of the Public Service Loan Forgiveness program.
The PSLF program, established in 2007, permits qualifying employees of government agencies and nonprofit organizations to have their federal student loans discharged after completing 120 qualifying monthly payments, typically spanning a decade. The Biden administration subsequently expanded the program’s accessibility, resulting in over 1 million borrowers receiving loan forgiveness. The current lawsuit centers on allegations that the Trump administration has improperly calculated payment histories and failed to grant appropriate credit for employment periods served by eligible participants.
The plaintiffs specifically challenge the administration’s handling of the PSLF Buyback program, which permits borrowers who have accumulated 120 months of eligible employment to retroactively purchase credit for months lost due to forbearance or deferment periods. According to court filings, approximately 88,000 borrowers awaited decisions on Buyback applications as of earlier in the year. Additionally, the lawsuit contends that the Education Department arbitrarily reduced qualifying payment counts earlier this year without explanation, extending the timeline for borrowers to achieve forgiveness eligibility.
AFT President Randi Weingarten, serving as lead plaintiff, stated that McMahon has disregarded her obligation to assist teachers, nurses, and first responders. Co-plaintiff Elizabeth Schoepflin, a speech-language pathologist from New York, expressed concern that payment credits she earned have been withdrawn without justification. An Education Department representative countered that the agency is rectifying coding errors from the previous administration that produced inaccurate payment counts, asserting the department remains committed to properly crediting all qualifying payments.
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