AFT Sues Education Department Over 90,000 PSLF Cases as Buyback Reviews Drag Nearly 2 Years
Updated
Updated · The New York Times · Oct 30
AFT Sues Education Department Over 90,000 PSLF Cases as Buyback Reviews Drag Nearly 2 Years
3 articles · Updated · The New York Times · Oct 30
Summary
The American Federation of Teachers and President Randi Weingarten sued Education Secretary Linda McMahon on Friday, alleging the department is unlawfully delaying Public Service Loan Forgiveness relief for public workers.
Nearly 90,000 borrowers are stuck in a backlog tied to PSLF “buyback” applications, the suit says, with reviews stretching close to two years and some payment counts disappearing or dropping without explanation.
The buyback option was created after the Biden administration tried to fix years of PSLF errors, letting borrowers purchase missed months to reach the 120 qualifying payments needed for cancellation.
The Education Department said the reviews require extensive manual paperwork and are being shifted to student loan servicers, while accusing the union of turning to litigation in an election year.
For teachers, nurses and other nonprofit or government workers, the delays postpone debt cancellation and keep money tied up that could otherwise go to housing, savings or other household needs.