Key facts
- A lawsuit alleges the Trump administration mishandled Public Service Loan Forgiveness.
- The suit claims 90,000 borrowers' buyback applications were not processed.
- The Department of Education allegedly rescinded payments, trapping borrowers in debt.
The Trump administration is facing a new lawsuit alleging mishandling of Public Service Loan Forgiveness (PSLF). The American Federation of Teachers (AFT) filed the suit against the Department of Education, claiming it failed to process buyback applications for 90,000 borrowers and illegally rescinded payments. This has left public service workers trapped with debt that should have been forgiven. The lawsuit includes Donald Knierim, a retired borrower who had 15 payments rescinded after being notified he had achieved PSLF. Advocacy group Protect Borrowers is representing the AFT.