Settlement Backs Up Overhaul of Loan Forgiveness Program

Published on
October 14, 2021

(Excerpts from Inside Higher Ed News)

  • The Department of Education has settled a lawsuit filed in 2019 over its failure to properly manage its promise of student loan forgiveness for public employees.
  • The settlement comes after Randi Weingarten, president of the American Federation of Teachers, and eight individual AFT members sued former secretary of education Betsy DeVos for “gross mismanagement” of the Public Service Loan Forgiveness program.
  • The plaintiffs had struggled to receive relief from their student loans due to inaccurate records of payments, incorrect information provided by loan servicing companies and lack of oversight by the department, alleged the complaint.
  • All eight individual plaintiffs will have their remaining student loan debt fully discharged, totaling nearly $400,000 in relief.
  • Additionally, as a part of the settlement, the department committed to several reforms to the Public Service Loan Forgiveness program