Teachers Union Sues Over Trump Attack on Student Loan Repayment Programs

A leading teachers union announced Wednesday that it is suing the Trump administration for cutting off public service workers with federal student loans from affordable repayment and debt relief programs.

"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," said American Federation of Teachers (AFT) president Randi Weingarten in a statement. "The former president tried to fix the system for 45 million Americans, but the new president is breaking it again."

"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,” the union leader continued. "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."

The 1.8 million-member union is represented by the law firm Berger Montague PC and the Student Borrower Protection Center (SBPC), which filed the federal lawsuit late Tuesday in Washington, D.C.

"The U.S. government, through the U.S. Department of Education (ED or the department), is the country's largest creditor of student loans," the complaint notes. "Today, there are nearly 43 million federal student loan borrowers, with approximately $1.62 trillion outstanding in debt."

As the filing details, Congress "designed this federal student loan program to expand access to higher education and increase economic mobility regardless of one's financial station," and specifically "directed ED to offer income-driven repayment (IDR) plans that tie a borrower's monthly payment to their income."

However, under President Donald Trump and Education Secretary Linda McMahon, the department has shut down IDR plans and not "indicated when it will—if ever—resurrect the programs," the complaint continues. "The result: borrowers are unable to access affordable monthly payment plans, some borrowers are being thrust into default on their debt, and some public service workers are being denied their statutory right to lower their monthly payment and earn credit towards Public Service Loan Forgiveness (PSLF)."

"This is not occurring in a vacuum for student loan borrowers," the document stresses. "It comes in the context of the president repeatedly announcing his plans to close the Department of Education, which was created by an act of Congress. And, it is on the heels of the recent equally unlawful actions to gut critical student loan protections from the Consumer Financial Protection Bureau."

Additionally, as Common Dreams reported earlier this month, Trump has directly attacked the PSLF with an executive order excluding from the debt relief program "organizations that engage in activities that have a substantial illegal purpose," targeting groups that help immigrants and transgender youth and organize protests that involve actions such as blocking roads.

"A significant number of AFT's membership has student debt, is working in public service, and has sought or will try to seek access to an IDR plan," the suit explains. "These borrowers simply want to pay back their student loans according to the terms that Congress, and their contracts, provide."

The AFT asked the court to declare that the Education Department is "unlawfully withholding" IDR plans and the PSLF program, and prevent the ED from "collecting from borrowers who are eligible for income-driven repayment until it satisfies its statutory, regulatory, and contractual obligations." The union also wants the court to order the department to fulfil those obligations.

"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," said SBPC executive director Mike Pierce. "Borrowers have a legal right to payments they can afford and today we are demanding that these rights are enforced by a federal judge."