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AFT Seeks Court Order To Restart Student Loan Forgiveness By January

The teachers union asks a judge to restart IDR/PSLF relief by January to avert borrower harm, including potential tax bills.

Overview

  • The Education Department’s latest court filing shows 1,076,266 income-driven repayment applications still pending after 305,641 were processed in August, down from nearly two million this spring.
  • Public Service Loan Forgiveness Buyback processing reached 5,600 in August, yet the queue grew to 74,510; outside analysis estimates clearing it at this pace would take more than 13 months if no new requests arrive.
  • The American Federation of Teachers filed a motion for a preliminary injunction seeking to compel the department to resume relief by January, citing imminent borrower harm and the expiration of federal tax relief for IDR discharges at year-end 2025.
  • In an amended complaint, the AFT alleges unlawful denials or delays across IBR, PAYE and ICR discharges and PSLF access, and references roughly 460,000 IDR requests tied to SAVE selections that have been or will be rejected, echoing earlier media reports of more than 400,000 likely summary denials.
  • The department has not yet responded to the new motion; briefs are due in October with a hearing expected in November, according to filings reported by Forbes.