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flag AFT sues DOE to force student loan forgiveness for eligible borrowers under delayed repayment plans.

flag The American Federation of Teachers (AFT) has sued the U.S. Department of Education, urging a federal judge to compel the agency to resume student loan forgiveness for eligible borrowers. flag The AFT argues the department is unlawfully delaying debt cancellation for those on income-driven repayment plans and Public Service Loan Forgiveness, despite meeting requirements. flag The lawsuit seeks an injunction to enforce forgiveness under plans like IBR, ICR, and PAYE after 20 or 25 years of payments and to process thousands of backlogged PSLF applications. flag The Education Department cites legal uncertainty around the SAVE plan and federal court actions as reasons for delays, though no timeline has been provided for resuming forgiveness. flag The American Rescue Plan’s tax-free treatment of loan cancellation expires January 1, 2026, adding urgency.

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