Student Loan Delay Lawsuit Gains Momentum Under Trump

The American Federation of Teachers Files Class Action Against Student Loan Backlog

The American Federation of Teachers (AFT), a union representing over 1.8 million members, has taken legal action against the U.S. Department of Education, accusing it of failing to uphold borrowers' rights to affordable repayment plans and loan forgiveness programs. This move comes as thousands of student loan borrowers continue to face significant delays in accessing critical relief options.

According to court records from mid-August, more than 1.3 million borrowers are stuck in a backlog of applications for income-driven repayment (IDR) plans. Additionally, 72,730 individuals are waiting for a decision on their eligibility for Public Service Loan Forgiveness (PSLF). These delays have raised serious concerns about the government's ability to meet its obligations under existing laws.

Legal Action Against the Trump Administration

Earlier this month, the AFT filed a class action complaint against the Trump administration, focusing on its policies that have impacted student loan borrowers. This legal effort is an amendment to the union’s initial lawsuit from March, which also addressed the government's handling of student loan issues.

The AFT argues that the Department of Education has been denying borrowers access to essential programs such as IDR plans and PSLF. IDR plans allow borrowers to pay based on their income, with the potential for debt cancellation after a set period. PSLF, on the other hand, offers debt relief to public servants and certain nonprofit workers after 10 years of payments.

“The Department's decision to withhold IDR and PSLF benefits is actively harming borrowers,” the AFT filing states. However, the U.S. Department of Education has not responded to requests for comment on these allegations.

Evidence of Systemic Delays

As part of the AFT’s legal challenge, the Education Department has provided data showing the high number of borrowers waiting to access IDR plans and PSLF. According to court records, over a million borrowers are currently in a backlog of IDR applications, while nearly 73,000 are awaiting a determination on their PSLF status.

Higher education expert Mark Kantrowitz noted that the backlog demonstrates the Department’s failure to fulfill its statutory requirements to provide relief programs. “The backlog provides evidence that the U.S. Department of Education is not adequately fulfilling the statutory requirements” to offer those relief programs, he said.

Real-Life Impact on Borrowers

The AFT’s amended complaint includes several student loan borrowers who have been affected by the Trump-era changes. One plaintiff owes approximately $198,000 in federal student loan debt and has been in repayment for over 25 years. According to the filing, she has been eligible for loan cancellation through the IDR program since May 2025, but the Department has not acted on her case.

Another plaintiff, who owes around $756,000 in student debt, has been eligible for debt forgiveness since February but has yet to receive relief. These cases highlight the real-world consequences of the delays.

Processing Delays and Long Wait Times

By the end of July, more than 1.3 million applications for an IDR plan remained pending, according to the legal challenge. Meanwhile, the Education Department has been processing only about 87,823 applications per month. At this rate, borrowers may have to wait years to receive the benefits that Congress intended to provide them.

“This delay is not just a bureaucratic issue—it’s a matter of fairness and financial survival for many borrowers,” the AFT filing states. The union continues to push for swift action to address the backlog and ensure that all eligible borrowers can access the relief they need.