Student-loan borrowers in public service are trapped with debt that 'should be forgiven,' a new lawsuit says
Source: Business Insider ·
The American Federation of Teachers sued Trump for stalling student-debt relief for thousands of borrowers in Public Service Loan Forgiveness.
From the source
A new lawsuit against the Trump administration targets delays in processing Public Service Loan Forgiveness for thousands of student-loan borrowers.Chip Somodevilla/Getty ImagesThe Education Department is facing a new lawsuit over the Public Service Loan Forgiveness program.The lawsuit said the department is failing to process buyback applications and is illegally rescinding borrowers' payments.These delays are forcing borrowers to pay off loans that should be forgiven, the lawsuit said.The Trump administration is facing another lawsuit over claims it's mishandling student-loan forgiveness for thousands of borrowers.On Friday, the American Federation of Teachers President Randi Weingarten filed a lawsuit against the Department of Education over stalled debt relief for borrowers pursuing Public Service Loan Forgiveness, which forgives student debt for government and nonprofit workers after 10 years.The lawsuit, which is seeking class-action status, said that the department has failed…
BestAIBroker analysis
- Finance-aware sentiment: slightly negative (-0.30 on a -1 to +1 scale).
- Event classification: LAWSUIT.
- Market importance score: 37/100, weighting entity relevance, source credibility, multi-outlet coverage and recency.
- Symbols referenced: A.