The American Federation of Teachers (AFT) has filed a class action lawsuit against the Trump administration, claiming that the U.S. Department of Education is blocking student loan borrowers from accessing legally guaranteed repayment and forgiveness programs. Representing roughly 1.8 million educators, the union’s latest filing builds on an earlier lawsuit from March addressing government actions affecting federal student loan borrowers.
According to the complaint, the programs in question include income-driven repayment plans (IDRs), which adjust monthly payments based on income and can lead to debt cancellation after a set period, and Public Service Loan Forgiveness (PSLF), which wipes out debt for public servants and certain nonprofit employees after ten years of qualifying payments.
“The Department’s decision to withhold IDR and PSLF benefits is actively harming borrowers,” the AFT filing states. The Department of Education has not responded to requests for comment.
A Backlog Leaving Borrowers in Limbo
Government data shared in the original lawsuit paints a stark picture. By mid-August, over a million borrowers were waiting for IDR plan approvals, while 72,730 awaited PSLF determinations. “The backlog demonstrates that the U.S. Department of Education is failing to meet statutory requirements for relief programs,” said higher education analyst Mark Kantrowitz.
The amended class action includes borrowers with severe financial stakes. One plaintiff, with $198,000 in federal student debt, has been in repayment for more than 25 years and has been eligible for cancellation since May 2025, yet her loans remain unpaid. Another, owing $756,000, has been awaiting debt forgiveness since February but has not received relief.
The AFT notes that the Department processes only around 87,823 IDR applications per month, leaving more than 1.3 million still pending by the end of July. “At this pace, borrowers could face years of delays before receiving the benefits Congress intended,” the filing warns.
This lawsuit underscores growing frustration among educators and other federal borrowers, spotlighting systemic hurdles in accessing programs designed to provide meaningful debt relief.