Teachers Union Sues Education Department Over Halted Student Loan Repayment Plans

The Federation of Teachers alleges federal law violations after the Department of Education suspended income-driven repayment plans, affecting millions of borrowers.

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.