The American Federation of Teachers has filed a lawsuit against the Department of Education over the rollback of income-driven repayment student loan applications.
As previously reported by The Dallas Express, the Trump administration’s Department of Education temporarily suspended online applications for all its income-driven repayment (IDR) plans after the 8th Circuit Court of Appeals upheld an injunction against the Saving on a Valuable Education (SAVE) plan.
The American Federation of Teachers (AFT) argues in the lawsuit that the Department of Education interpreted the ruling too broadly and should not have removed the applications for other IDR plans. The application suspension is affecting millions of Americans looking for affordable ways to manage their debt, per CNBC.
Borrowers previously enrolled in the SAVE plan, which has now been blocked, cannot transition into a new IDR plan while the applications are down.
AFT President Randi Weingarten said in a statement that the Trump Administration is making life more difficult for those who can’t afford college without loans.
“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,” she said, as reported by The Hill. “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 Department of Education has claimed that this move is only temporary and that the applications should return soon once they are aligned with the guidelines established by the 8th Circuit Court of Appeals.
“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,” stated a spokesperson for the department, per CNBC.
There is no indication of how this lawsuit will proceed if the applications return in a timely manner.
While the Trump administration works to remedy the ongoing legal battles related to the SAVE plan and IDR applications, some universities are working to get ahead of student loan issues in the future.
Harvard University recently announced that students whose families earn up to $200,000 will receive discounts on tuition, housing, and meals, as previously reported by The Dallas Express. The university will fully cover the expenses of students whose families earn $100,000 or less.