Washington D.C. – The American Federation of Teachers (AFT) has initiated a class action lawsuit against the federal government, claiming widespread denials of access to legally mandated student loan repayment assistance and forgiveness programs. The lawsuit comes amid growing concern over meaningful backlogs and delays affecting millions of borrowers seeking relief.

The Core of the Dispute

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Representing approximately 1.8 million educators nationwide, the AFT alleges that the U.S. department of Education is failing to uphold its obligations concerning income-driven repayment (IDR) plans and the Public Service Loan Forgiveness (PSLF) program. These programs are designed to offer affordable repayment options and eventual debt cancellation for eligible borrowers.

according to the complaint, the Department’s actions are actively harming borrowers who qualify for these programs. The AFT initially filed suit in March, and this current action builds on that initial legal challenge, adding a class action component to address the systemic nature of the problem.

Mounting Evidence of Delays

Recent court filings reveal the extent of the problem. Data presented in mid-August indicated that over one million borrowers were facing delays in the processing of their IDR plan applications. Simultaneously, roughly 72,730 individuals were awaiting decisions on their PSLF eligibility. Experts suggest these figures demonstrate the Education Department is not meeting its statutory requirements.

“The sheer volume of unprocessed applications is a clear indication of systemic issues within the Department,” stated Mark Kantrowitz, a leading higher education finance expert. “Borrowers are facing perhaps years-long waits to receive the benefits they are legally entitled to.”

Individual Stories Highlight the Impact

The AFT’s amended complaint features accounts from individual borrowers affected by the delays. One plaintiff,a woman with nearly $198,000 in debt,has been eligible for loan cancellation under an IDR plan as May 2025 but remains burdened by her debt. Another borrower, owing approximately $756,000, has been awaiting forgiveness since February, according to the lawsuit.

The complaint underscores that, at the current processing rate of around 87,823 applications per month, many borrowers could face prolonged waits – potentially years – before receiving the relief they are due.

Recent Developments & wider Context

This legal action coincides with increased scrutiny of federal student loan policies. Earlier this month, concerns were raised about the potential impacts of adjustments to Social Security cost-of-living adjustments and shifting tax policies relating to tipped employees. These events add to the ongoing financial pressures faced by many Americans.

Program Eligibility Potential benefit
Income-Driven Repayment (IDR) borrowers with qualifying federal student loans and demonstrated financial need. Monthly payments based on income and family size, potential loan forgiveness after a set period.
Public Service Loan Forgiveness (PSLF) Borrowers employed by qualifying public service or nonprofit organizations. Loan forgiveness after 120 qualifying payments (10 years).

Did you Know? As of September 2025, approximately 43.4 million Americans hold federal student loan debt, totaling over $1.75 trillion.

Pro Tip: Regularly check the status of your student loan application through your loan servicer’s website and keep detailed records of all communication.

The U.S. Department of Education has not issued a public response to the lawsuit as of today.

Understanding Student Loan Forgiveness programs

Navigating the world of student loan repayment can be complex. Income-driven repayment plans can provide a lifeline for borrowers facing financial hardship, while programs like PSLF reward those who dedicate their careers to public service.Understanding the eligibility requirements and application processes is crucial for maximizing potential benefits. Borrowers should consult the official Federal Student Aid website (https://studentaid.gov/) for detailed information and assistance.

Frequently Asked Questions About Student Loan Forgiveness

  • What is Income-Driven Repayment? Income-Driven Repayment (IDR) plans base your monthly loan payment on your income and family size.
  • Who qualifies for Public Service Loan Forgiveness? Public Service Loan Forgiveness (PSLF) is available to borrowers employed full-time by a qualifying public service employer or nonprofit.
  • What if my application is delayed? if your student loan application is delayed, contact your loan servicer and the Department of Education to inquire about the status.
  • Can I appeal a denial for student loan forgiveness? Yes, you generally have the right to appeal a denial for student loan forgiveness.
  • Were can I find more information about student loan programs? The Federal Student Aid website (studentaid.gov) provides comprehensive information about all federal student loan programs.