Union sues Trump administration for shutting down student loan repayment plans
Source: CNBC
Published Wed, Mar 19 2025 9:03 AM EDT | Updated 4 Min Ago
The American Federation of Teachers is suing the U.S. Department of Education for shutting down access to affordable repayment plans for millions of student loan borrowers.
The AFT, one of the country’s biggest labor unions, filed the lawsuit on Tuesday over the Trump administration’s decision to take down the applications for income-driven repayment plans.
“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 AFT President Randi Weingarten in a statement.
Congress created the first income-driven repayment plans in the 1990s to make federal student loan borrowers’ bills more affordable. The plans limit people’s monthly payments to a share of their discretionary income and cancel any remaining debt after a certain period, typically 20 years or 25 years. More than 12 million people were enrolled in IDR plans as of September 2024, according to higher education expert Mark Kantrowitz.
Read more: https://www.cnbc.com/2025/03/19/union-sues-trump-for-shutting-down-student-loan-repayment-plans.html
Article finally updated.
Original article -
The American Federation of Teachers is suing the U.S. Department of Education for “shutting down” access to affordable repayment plans for millions of student loan borrowers.
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