The American Federation of Teachers sued the Trump administration on Friday, alleging that it unlawfully blocked student loan forgiveness for tens of thousands of eligible Public Service Loan Forgiveness borrowers. The union says the Education Department, led by Secretary Linda McMahon, miscounted repayment periods and failed to credit qualifying months of service. According to the complaint, 88,000 borrowers were still awaiting a decision in the spring on a program allowing retroactive payment for missed qualifying months. Elizabeth Schoepflin, a New York speech-language pathologist and co-plaintiff, said qualifying payments were removed from her count without explanation. The Education Department defended the changes as corrections to coding errors made under the Biden administration that resulted in inaccurate payment counts.
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