A court filing cited by CNBC said 88,000 borrowers awaited Public Service Loan Forgiveness Buyback decisions in the spring as a teachers’ union sued over program delays.
The American Federation of Teachers (AFT) filed Weingarten v. McMahon in federal district court in Washington, D.C., CNBC reported Friday. The suit alleges that the U.S. Department of Education, led by Education Secretary Linda McMahon, miscounted borrowers’ payment timelines and failed to credit qualifying periods toward cancellation. Plaintiffs also say the department lowered some borrowers’ qualifying totals earlier this year, extending the wait.
The AFT represents about 1.8 million members, CNBC reported. Public Service Loan Forgiveness, signed into law by President George W. Bush in 2007, covers eligible employees of government agencies and nonprofit organizations. Borrowers generally qualify for cancellation after making 120 payments over about 10 years. Biden-era changes expanded access, and more than 1 million borrowers have received forgiveness through the program, CNBC reported.
The suit also challenges delays in PSLF Buyback. After 120 months of qualifying public-service employment, borrowers can ask to make retroactive payments for periods missed during deferment or forbearance. PSLF counts qualifying payments toward forgiveness, while Buyback eligibility uses qualifying months of employment.
AFT President Randi Weingarten is the lead plaintiff, joined by union members who work in public service. She said the case demands McMahon “stop stalling and do her job.” Co-plaintiff Elizabeth Schoepflin, a New York speech-language pathologist, said, “Every month this drags on is another payment I shouldn’t have to make.”
An Education Department spokesperson told CNBC that the agency is correcting Biden-era “coding errors” that led to inaccurate totals for some borrowers. The department said it would make sure borrowers receive the credit they qualify for.
