Teachers Union Sues Trump Administration Over Student Loan Delays

The American Federation of Teachers and a group of student-loan borrowers filed a class-action lawsuit in federal court on October 30, 2026. The suit alleges that the Trump administration is illegally delaying student-debt forgiveness for tens of thousands of public servants by stalling the processing of buyback applications.

These applications allow borrowers to pay for months spent in forbearance to meet the 120-payment requirement for Public Service Loan Forgiveness. Approximately 88,000 applications remained pending as of April 2026. The complaint further claims that some borrowers have seen previously credited payments disappear from their accounts without explanation.

Plaintiffs argue that these delays, coupled with a significant reduction in Department of Education staffing and a broader system overhaul, have created financial instability. Randi Weingarten stated that the administration seems determined to hurt those who dedicated their careers to public service. Attorney Laura Dismore noted that borrowers are experiencing intense stress and anxiety, leading some to put off starting families or changing careers.