The American Federation of Teachers (AFT) filed a class-action lawsuit on Friday against the U.S. Department of Education, alleging officials under the Trump administration unlawfully delayed or denied Public Service Loan Forgiveness (PSLF) for tens of thousands of borrowers. The lawsuit, Weingarten v. McMahon, was filed in the U.S. District Court for the District of Columbia and names Education Secretary Linda McMahon as the defendant.
The AFT, representing 1.8 million members, claims the department incorrectly counted payment timelines, rescinded previously approved payments, and failed to process 90,000 borrower applications for payment adjustments. These issues allegedly trapped public service workers—including teachers, nurses, and first responders—in debt that should have been forgiven under the PSLF program.
What is PSLF?
The Public Service Loan Forgiveness program, established in 2007 under President George W. Bush, allows government and nonprofit employees to have their federal student loans canceled after 120 qualifying payments (typically over 10 years). The Biden administration expanded eligibility, leading to over 1 million borrowers receiving forgiveness.
Key allegations in the lawsuit
The AFT’s complaint centers on three primary claims:
- Payment miscounting: Borrowers allege the department failed to credit payments made during deferment or forbearance, which could have qualified them for relief.
- Payment rescissions: Some borrowers, like Donald Knierim, reported having 15 previously approved payments retroactively invalidated, delaying their forgiveness.
- Processing backlogs: The department has not updated its PSLF payment tracker for many borrowers, leaving them in limbo as they await final approval.
AFT’s response
AFT President Randi Weingarten stated in a press release that Secretary McMahon has “flagrantly ignored her responsibility” to assist public service workers. The union is seeking class-action status to represent all affected borrowers.
Department of Education’s stance
The department has not publicly responded to requests for comment. The lawsuit follows years of criticism over PSLF implementation, including reports of processing delays and confusing eligibility rules.
Background: Ongoing PSLF challenges
Since its expansion, PSLF has faced persistent issues:
- Buyback applications, which allow borrowers to retroactively count certain payment periods, have faced months-long delays.
- Some borrowers report their final payments were not recognized, forcing them to restart the 10-year timeline.
- Advocacy groups, including Protect Borrowers, argue the department has violated federal law by failing to honor its obligations to public service workers.
The lawsuit seeks to compel the department to process pending applications, restore rescinded payments, and comply with PSLF requirements. A court date has not yet been scheduled.