NEW LAWSUIT: AFT sues Dept. of Education for denying borrowers’ rights (Student Borrower Protection Center)

Yesterday, President Trump signed an executive order ordering the shutdown of the U.S. Department of Education (ED). The order claims to ensure the “uninterrupted delivery of services, programs, and benefits on which Americans rely,” yet Trump and Secretary Linda McMahon have gutted the arms of ED that make those functions possible. Read our statement on yesterday’s executive order here. Last week, Trump announced a 50 percent reduction in the workforce at the Department. Now he plans to move student loans to the Small Business Administration?!?! The Trump Administration is intentionally breaking the student loan system and attacking borrowers and working families with student debt. But we’ve been fighting back. On Tuesday night, the 1.8 million-member AFT sued ED for denying borrowers’ access to affordable loan payments and blocking progress towards Public Service Loan Forgiveness (PSLF)—in violation of federal law. Three weeks ago, federal education officials eliminated access to Income-Driven Repayment (IDR) plans by removing the application from ED’s website and secretly ordering student loan servicers to halt processing all applications. These IDR plans provide millions of borrowers the right to tie their monthly payment to their income and family size, giving them the option to make loan payments they can afford. IDR plans are also the only way for public service workers to benefit from PSLF—a critical lifeline for teachers, nurses, first responders, and millions of other public service workers across the country. SBPC Executive Director Mike Pierce’s statement:

“Student loan borrowers are desperate for help, struggling to keep up with spiking monthly payments in a sinking economy, all while President Trump plays politics with the student loan system. Borrowers have a legal right to payments they can afford and today we are demanding that these rights are enforced by a federal judge.”

AFT President Randi Weingarten’s statement:

“By effectively freezing the nation’s student loan system, the new administration seems intent on making life harder for working people, including for millions of borrowers who have taken on student debt so they can go to college. The former president tried to fix the system for 45 million Americans, but the new president is breaking it again. “The AFT has fought tirelessly to make college more affordable by limiting student debt for public service workers and countless others—progress that’s now in jeopardy because of this illegal and immoral decision to deny borrowers their rights under the law. Today, we’re suing to restore access to the statutory programs that are an anchor for so many, and that cannot be simply stripped away by executive fiat.”

Have you been affected by the Trump Administration blocking access to IDR plans and progress toward PSLF? Want to take action? Fill out this survey to share your story with us—it should take less than five minutes!

Fill Out Survey

Here’s a roundup of some of the news coverage about the new lawsuit: ABC: Teachers Sue Trump Admin for Stopping Affordable Student Loan Repayment Plans CNBC: Union Sues Trump Administration for Shutting Down Student Loan Repayment Plans USA Today: Trump Administration Sued for ‘Effectively Breaking the Student Loan System' Forbes: Student Loan Borrowers Sue Trump Administration for Blocking Loan Forgiveness and Income-Driven Plans Politico Pro: Teachers Union Sues Education Department for Blocking Access to Repayment Plans Diverse Issues in Higher Education: Education Department Faces Federal Lawsuit as Student Loan Crisis Deepens for Millions