American Federation Of Teachers Start Class Action Over Blocked Student Loan Forgiveness - Above the Law

""Go into public service to pay off your student loans," they said. So you did - you took a job that paid less than you could have made elsewhere, but you figured it was a small price to pay for doing a little bit of good in the world as you earned debt forgiveness. At least you did the good, right? Many who enrolled in Public Student Loan Forgiveness did their years of work and on-time payments only to discover that the government didn't uphold their half of the bargain."

"A major national labor union filed a class action lawsuit against the Trump administration on Tuesday, alleging that the Department of Education and Secretary of Education Linda McMahon are unlawfully blocking student loan forgiveness for hundreds of thousands of borrowers across multiple programs, including several income-driven repayment plans and Public Service Loan Forgiveness, or PSLF...."

""For those borrowers who have satisfied the statutory requirements to have their debts cancelled but whose loans the Department has not cancelled, they are trapped in a debt that legally they should no longer owe. This debt continues to appear on credit reports restricting borrowers' ability to access credit to purchase homes, cars, and other necessities, and with looming tax consequences if action is not taken swiftly. These borrowers must also make payments on a debt that should no longer exist for fear of becoming delinquent, or agree to be placed in a forbearance with no clear end date.""

A major national labor union filed a class action alleging the Department of Education and Secretary Linda McMahon unlawfully blocked student loan forgiveness for hundreds of thousands of borrowers across multiple programs, including income-driven repayment and Public Service Loan Forgiveness. Many public-service employees accepted lower pay expecting debt cancellation after qualifying service and timely payments, but their loans were not cancelled. Eligible borrowers remain legally entitled to cancellation yet face debts on credit reports, restricted access to credit, potential tax consequences, and pressure to keep making payments or enter indefinite forbearance. The situation affects PSLF and several IDR plans.

Read at Above the Law