After a lawsuit was settled, tens of thousands of public employees might have their student loans forgiven.
According to the Associated Press, a settlement in a lawsuit launched by the nation’s major teachers unions against the US Department of Education might mean thousands of previously rejected public servants will have their cases reviewed.
The suit was filed on behalf of eight members of the American Federation of Teachers (AFT), who claimed they were wrongfully denied student loan relief through the Public Service Loan Forgiveness program. The accusations of mismanagement of the defective program, which the Education Department is attempting to fix separately, were resolved in a settlement announced Wednesday.
After ten years of monthly payments, the program is supposed to cancel student loans for college graduates who work in the public sector. Applicants have complained that they were mostly turned down because they did not meet the stringent eligibility requirements.
See the list below for more Associated Press reporting.
As part of the agreement, the government said it will automatically evaluate applications for any borrowers who were denied prior to November 1, 2020 and have made 10 years of payments. If the department determines that a denial was warranted, it will send borrowers an email explaining the decision and how they might reapply.
According to the lawsuit, the Education Department made many mistakes while processing applications and provided no recourse. It claimed that borrowers were being denied their access to due process in an improper manner. The claim was filed against the Department of Education and former Secretary of Education Betsy DeVos.
It goes one step farther than a temporary extension announced last week, which allows certain previously ineligible debtors to receive loan forgiveness if they apply by October 31, 2022.
For everyone whose application is denied, a new appeals process will be established by April 30, 2022. The lawsuit’s eight plaintiffs will also have their loan sums, which are believed to be worth almost $400,000.
The AFT’s president, Randi Weingarten, termed it a “game-changing victory” for educators, nurses, and other public employees who had been wrongfully dismissed.
In a conference call with reporters, Weingarten remarked, “We just assured that a promise made is a promise kept.” “The agreement untangles the Gordian knot of the PSLF’s bungled implementation.” The Biden administration, according to Kelly Leon, is committed to revamping the program, which she claims has fallen short of expectations. This is a condensed version of the information.