American Federation of Teachers Sues Department of Education Over Removal of Income-Driven Repayment Applications

The American Federation of Teachers (AFT), one of the largest educators' unions in the United States, filed a lawsuit against the Department of Education on Wednesday over the removal of income-driven repayment (IDR) student loan applications from its website.

This move comes in response to a recent court ruling that found the Biden administration's Saving on Valuable Education (SAVE) IDR plan to be illegal, and has prompted widespread concern among educators and borrowers who rely on such plans to manage their student debt.

At the end of February, the Department of Education removed access to IDR plans, including options like the Public Service Loan Forgiveness (PSLF) program, which is especially popular among teachers and public service workers. The PSLF program offers loan forgiveness to borrowers who work in qualifying public service jobs, such as teaching, healthcare, and nonprofit work, after making 120 qualifying payments under an IDR plan.

The AFT and many of its members, who have long advocated for reducing student debt, view these programs as essential to helping educators and other public service workers manage their loans.

The legal challenges to the IDR plans began after the 8th Circuit Court of Appeals ruled that the Biden administration's SAVE IDR plan, which was designed to reduce borrowers' monthly payments based on income and family size, was not in compliance with existing laws. As a result, the Department of Education moved to temporarily suspend the availability of these IDR plans while it works to bring them into alignment with the court’s ruling.

While the Department of Education has stated that the removal of IDR applications is a temporary measure, the decision has already had a significant impact on borrowers. Teachers, in particular, have expressed concern that they will lose out on opportunities to apply for loan forgiveness through the PSLF program and other IDR plans.

Without access to these repayment options, many educators are left uncertain about how they will be able to manage their student debt, especially given the high levels of student loan debt many teachers already carry.

AFT President Randi Weingarten strongly condemned the Department of Education's decision, calling it “illegal and immoral” to deny borrowers access to IDR programs that have long been viewed as essential for reducing student debt.

“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,” Weingarten said in a statement.

Weingarten emphasized that the union is taking legal action to restore access to these programs, which are critical for many public service workers who rely on them to manage their student loans. “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,” she added.

The AFT’s lawsuit is aimed at reinstating the income-driven repayment applications and ensuring that the rights of borrowers are upheld in accordance with existing laws.

The Department of Education, however, maintains that the suspension of the IDR applications is only temporary. A spokesperson for the department explained that the move was necessary to bring the IDR programs into compliance with the 8th Circuit’s ruling and that new, updated forms would be available soon.

“The Department is working to ensure these programs conform with the 8th Circuit’s ruling, and anticipates the revised form allowing borrowers to change repayment plans to be available as soon as next week,” the spokesperson said.

The removal of IDR applications has caused confusion and frustration among borrowers who were relying on the programs to manage their debt. Teachers, in particular, have been vocal about the negative impact this decision will have on their ability to qualify for loan forgiveness.

Many educators took advantage of the PSLF program, which was designed to alleviate the burden of student loan debt for those who dedicate their careers to public service. With the suspension of IDR applications, these educators now face uncertainty about their financial futures and their ability to take advantage of the benefits they were promised under the law.

The lawsuit filed by the AFT is part of a broader effort by public service workers, including teachers, to protect their access to loan forgiveness programs. The AFT’s legal action is seen as an important step in ensuring that federal education programs remain accessible to those who rely on them to manage their student debt.

If successful, the lawsuit could force the Department of Education to reverse its decision and reinstate access to IDR applications for borrowers.

In the meantime, the Department of Education is working to revise the IDR application forms and ensure that they comply with the 8th Circuit’s ruling. The department has expressed confidence that the revised forms will be available in the near future, allowing borrowers to once again apply for IDR plans and loan forgiveness through the PSLF program.

The controversy surrounding the IDR applications is just one example of the ongoing challenges facing borrowers and educators who are burdened by student loan debt. While the Biden administration had previously made efforts to expand access to income-driven repayment plans and student loan forgiveness programs, legal challenges and court rulings have complicated these efforts.

For many teachers and public service workers, the suspension of IDR applications is a setback in their efforts to reduce their student debt and secure financial stability.

As the legal battle continues, the AFT’s lawsuit will likely serve as a key test of the future of student loan forgiveness programs and the federal government’s role in managing student debt. If the court rules in favor of the AFT, it could pave the way for the restoration of access to IDR plans and provide much-needed relief to the millions of borrowers who rely on these programs to manage their debt.

For now, teachers and other public service workers remain hopeful that the courts will restore their access to income-driven repayment plans and student loan forgiveness programs, allowing them to continue their careers without the crushing weight of student debt.