Teachers sue for reinstatement of income-driven loan plans

The American Federation of Teachers (AFT) has filed a lawsuit against the Department of Education. The union is trying to restore income-based student loan repayment options that were recently halted. AFT claims that the Trump administration’s decision to stop these repayment plans is damaging the system. The union represents 1.8 million teachers and says over 12 million borrowers rely on these plans. Many borrowers were waiting for their applications to be processed when the program was closed three weeks ago. The lawsuit argues that halting access to Income-Driven Repayment (IDR) plans is against federal law. These plans help borrowers pay their loans based on their income. After a repayment term of 20 to 25 years, borrowers may receive loan forgiveness. The Department of Education has cited a federal court ruling as the reason for the pause. However, AFT argues that this ruling only affected one specific plan, yet all IDR options were suspended. They say this has caused confusion and stress for many borrowers. Mike Pierce, from the Student Borrower Protection Center, expressed concern for borrowers. He stated that they are struggling financially and need better repayment options. Senators have also called for clarity from the Department of Education, noting that suspending all IDR plans was unnecessary. It has left many borrowers unsure about their options. Student loan debt is a significant issue in the U.S., with about 43 million borrowers collectively owing around $1.62 trillion. The AFT's move to sue the government highlights the ongoing challenges in managing student loan debt in the country.