Education

Student loan forgiveness delays under Trump prompt class action effort

By Annie Nova

Copyright cnbc

Student loan forgiveness delays under Trump prompt class action effort

The American Federation of Teachers filed a class action complaint earlier this month against the Trump administration, related to its student loan policies.

AFT, a teacher’s union representing some 1.8 million members, has said that the U.S. Department of Education is denying student loan borrowers their legally required rights to affordable repayment plans and loan forgiveness programs. The class action effort is part of an amendment to AFT’s initial legal action against the Trump administration in March, also over the government’s actions impacting student loan borrowers.

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The programs AFT is accusing Trump officials of denying borrowers access to include income-driven repayment plans, or IDRs, which tie a borrower’s monthly bill to their income and lead to debt cancellation after a certain period, and Public Service Loan Forgiveness, or PSLF, which cancels the debt of public servants and certain nonprofit workers after a decade of payments.

“The Department’s decision to withhold IDR and PSLF benefits is actively harming borrowers,” the AFT filing reads.

The U.S. Department of Education did not respond to requests for comment.