AFT Sues Over Mishandling of Public Service Loan Forgiveness Program

Class Action Lawsuit Filed Against Education Secretary Linda McMahon

WASHINGTON—A significant lawsuit was initiated today in federal court, accusing Education Secretary Linda McMahon of obstructing debt relief for thousands of public service workers, according to federal law.

The suit, Weingarten v. McMahon, exposes the serious mismanagement of the Public Service Loan Forgiveness program (PSLF) by McMahon's Department of Education, leaving borrower applications unprocessed for extended periods.

Filed in the District of Columbia, this class action aims to provide relief to all affected borrowers, not just the plaintiffs named in the lawsuit.

“Secretary McMahon has flagrantly ignored her responsibility to help teachers, nurses and first responders under the buyback provision her department is required to honor,” stated AFT President Randi Weingarten, the lead plaintiff. “This lawsuit demands that McMahon stop stalling and do her job—to help, rather than hurt, the people she is sworn to serve.”

Challenges in the Public Service Loan Forgiveness Program

McMahon aims to dismantle the department she oversees, impairing its functions and increasing bureaucratic challenges. The PSLF, initiated under President George W. Bush, enables public service workers to clear their student loans after 120 payments.

Recent changes in federal repayment strategies and the COVID-19 impact have often led to forbearance or deferment for borrowers. The buyback provision allows them to retroactively credit payments missed during these periods, contributing to their 120-payment total for loan discharge.

However, by April, a backlog of nearly 90,000 applications existed, up from 49,000 the previous year, with no updated processing timeline from the department.

The lawsuit claims McMahon’s mismanagement has left these applications stalled, with borrowers unable to move forward in the process. Borrowers, eligible after ten years of public service, face a significant obstacle in obtaining the debt forgiveness they were promised.

Additional Issues with Loan Forgiveness Credits

The complaint addresses multiple PSLF issues, including the department retracting previously granted PSLF credits. In August, some borrowers experienced unexplained reductions in their PSLF payment counts.

“I’ve dedicated my career to improving the lives of children in my community. I did everything right to earn relief from my student debt,” said Elizabeth Schoepflin, a speech-language pathologist, AFT member and co-plaintiff from New York.

Violations of the Administrative Procedure Act are cited, and plaintiffs seek permanent injunctive relief requiring the department to meet its statutory obligations.

“PSLF is not a handout. It is a commitment to people who dedicate their careers to public service,” said David Petley, a co-plaintiff and associate AFT member from Oregon.

AFT’s Continued Legal Efforts

The American Federation of Teachers (AFT) has previously engaged in multiple lawsuits to protect student loan borrowers. This case follows the 2019 Weingarten v. DeVos, which facilitated over $78 billion in loan forgiveness for public workers.

“The teachers, nurses and public service workers of this country deserve the debt relief Congress promised to them, and the AFT will fight to deliver on that promise,” said Protect Borrowers Senior Counsel Laura C. Dismore.

Represented by Protect Borrowers and Berger Montague, the plaintiffs and proposed class of borrowers seek certification to represent borrowers nationwide affected by stalled applications or retracted PSLF credits.

Further details on the filing can be found here.