Veytics Intelligence
2026-10-30 · CNBC

Class action lawsuit blames Trump officials for student loan forgiveness delays

The American Federation of Teachers sued the Trump administration Friday, alleging it unlawfully blocked student loan forgiveness for tens of thousands of borrowers who qualify. The plaintiffs argue in their lawsuit, Weingarten v. McMahon , filed in the U.S. District Court for the District of Columbia, that U.S. Department of Education Secretary Linda McMahon has mismanaged the popular Public Service Loan Forgiveness program by incorrectly counting borrower's payment timelines and not awarding people credit for time served. PSLF, which President George W. Bush signed into law in 2007, allows certain not-for-profit and government employees to have their federal student loans canceled after 120 payments, generally paid over 10 years.

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