Overview

• The American Federation of Teachers (AFT) has filed a lawsuit against the U.S. Department of Education for halting income-driven repayment (IDR) plans and blocking Public Service Loan Forgiveness (PSLF).
• The Department of Education suspended all IDR plans following a February 18 ruling from the 8th Circuit Court of Appeals that blocked the Biden-era SAVE plan.
• The AFT claims the Department's actions exceed the court ruling, causing financial harm to over 12 million borrowers and more than 1 million applicants awaiting processing.
• The lawsuit seeks a court order to restore access to IDR plans and PSLF, arguing the suspension violates borrowers' legal rights under federal law.
• The Department of Education states the suspension is temporary, with revised applications expected soon, though no specific timeline has been provided.