Trump Admin Resumes Student Loan Forgiveness Programs

The American Federation of Teachers and the U.S. Department of Education have temporarily resolved key disputes in a major federal lawsuit challenging the handling of income-driven repayment and forgiveness programs.

In a joint status report filed Friday (PDF File) in the U.S. District Court for the District of Columbia, both sides asked Judge Reggie B. Walton to deny, for now, the union’s motions for a preliminary injunction and class certification. Those motions sought immediate relief for borrowers who said they were wrongly denied or delayed in receiving debt cancellation.

The agreement allows the Education Department to continue processing student loan forgiveness under the Income-Based Repayment (IBR), Income-Contingent Repayment (ICR), and Pay As You Earn (PAYE) programs while the lawsuit remains pending.

The AFT had filed suit earlier this year, alleging that the Department was failing to provide legally required repayment plans and loan forgiveness. The lawsuit has a potential impact on millions of borrowers navigating overlapping repayment rules and deadlines.