Public servants file class action lawsuit over student loan forgiveness

The American Federation of Teachers, alongside nine borrowers, has filed a class action lawsuit against the U.S. Department of Education and Secretary Linda McMahon. The lawsuit alleges gross mismanagement of the Public Service Loan Forgiveness (PSLF) program.

Plaintiffs claim the department is actively delaying or denying loan forgiveness to eligible public servants who have met the program requirements, such as working full-time for qualifying government or non-profit organizations and making 120 qualifying monthly payments. The legal challenge seeks to address what borrowers describe as a bureaucratic nightmare of denials and delays.