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The American Federation of Teachers (AFT) has initiated legal action against the U.S. Department of Education, criticizing the recent withdrawal of access to affordable repayment plans that affect millions of student loan borrowers.
This lawsuit was filed on Tuesday in response to the former administration’s choice to eliminate applications for income-driven repayment (IDR) plans.
Randi Weingarten, the AFT President, expressed deep concerns about the implications of this move, stating, “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.”
Income-driven repayment plans were established by Congress in the 1990s, aimed at alleviating the financial burden on federal student loan borrowers. These plans cap monthly payments based on a borrower’s discretionary income and allow for the cancellation of any remaining debt after a specified period, usually spanning 20 to 25 years.
According to data from higher education expert Mark Kantrowitz, more than 12 million individuals were registered in IDR plans as of September 2024.
The Department of Education has yet to provide a comment regarding the lawsuit. However, on its official website, the agency referenced a recent judicial order as the reason behind its suspension of IDR plan applications. This order originated from a ruling by an appeals court in February that stalled the Biden administration’s new IDR initiative, known as SAVE (Saving on a Valuable Education).
The AFT contends that the Education Department overstepped with its interpretation of the 8th U.S. Circuit Court of Appeals ruling, leading to an unnecessary halt in the applications for other IDR plans.
“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,” remarked Mike Pierce, executive director of the Student Borrower Protection Center.
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