A teacher’s union has filed a lawsuit accusing the Trump administration of unlawfully shutting down access to income-driven repayment plans used by millions of student loan borrowers.
The American Federation of Teachers filed the lawsuit in federal court and took aim at the Education Department’s decision to suspend borrowers’ ability to enroll in affordable repayment plans.
The department made the change after a federal appeals court ruled that Democratic President Joe Biden’s administration lacked authority to pursue a student debt relief program designed to lower monthly payments for borrowers and expedite loan forgiveness for some.
In the days that followed the 8th Circuit’s decision, the Education Department directed student loan servicers to stop accepting and processing income-driven repayment applications and removed the application form from the department’s website.
In the lawsuit, the American Federation of Teachers, argued that the Education Department did so even though the 8th Circuit’s decision did not bar the department from offering several other types of income-driven repayment plans that were not the subject of the litigation.
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