AFT sues Education Secretary McMahon over stalled Public Service Loan Forgiveness buyback requests and reduced payment counts; the department says it is correcting Biden-era coding errors

The American Federation of Teachers sues Education Secretary Linda McMahon, saying her department stalled Public Service Loan Forgiveness buyback requests and cut borrowers' payment counts. The department says it is correcting Biden-era coding errors.

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Published by The Dispute Index editorial teamPublished Updated

American Federation of TeachersRandi WeingartenU.S. Department of Education

Overview

Congress created Public Service Loan Forgiveness in 2007. It cancels the remaining federal student loan balance of a borrower who makes 120 qualifying monthly payments while working in public service, for a government or nonprofit employer. A 2022 rule created a buyback option, which lets a borrower who has met the public service requirement pay for months spent in certain forbearances or deferments so that those months count toward the 120.

The complaint cites the department's own status reports, filed in an earlier AFT lawsuit, showing that pending buyback requests rose from 49,318 in April 2025 to 89,720 in March 2026. It says that beginning in August 2026 the department lowered some borrowers' qualifying payment counts, citing coding errors, and that since the July 2026 payment period it has stopped adding new payment periods to some borrowers' online trackers. The complaint describes the case as the third suit Weingarten and the AFT have brought against the department in fewer than two years.

People in this case

Timeline

3 timeline entries on this page. Dates: August 1, 2026 to October 30, 2026

  1. August 2026

    1. The department begins lowering some borrowers' payment counts

      Incident

      According to the complaint, the Education Department announced in August 2026 that it would correct the counts of qualifying months shown on borrowers' online accounts, citing coding errors, and some borrowers' counts fell.

      [01]American Federation of Teachers

      Class action complaint filed in the U.S. District Court for the District of Columbia by Randi Weingarten, in her capacity as president of the American Federation of Teachers, and borrowers who are public service workers, against the U.S. Department of Education and Secretary Linda McMahon. It asks the court to certify three classes of borrowers seeking Public Service Loan Forgiveness and to order the department to process buyback requests, restore removed payment credit and post qualifying payments. Copy posted by the AFT.

      Complaint, Weingarten v. McMahon, No. 1:26-cv-03826 (D.D.C.) · American Federation of TeachersECF No. 1, filed October 30, 2026, 47 pages
  2. October 2026

    1. Weingarten and borrowers file a class action against McMahon

      Claim

      AFT President Randi Weingarten and borrowers who work in public service sue Education Secretary Linda McMahon and the Education Department in federal court in Washington, D.C., asking the court to certify three classes of borrowers and order the department to process buyback requests, restore removed credit and post qualifying payments.

      [01]American Federation of Teachers

      Class action complaint filed in the U.S. District Court for the District of Columbia by Randi Weingarten, in her capacity as president of the American Federation of Teachers, and borrowers who are public service workers, against the U.S. Department of Education and Secretary Linda McMahon. It asks the court to certify three classes of borrowers seeking Public Service Loan Forgiveness and to order the department to process buyback requests, restore removed payment credit and post qualifying payments. Copy posted by the AFT.

      Complaint, Weingarten v. McMahon, No. 1:26-cv-03826 (D.D.C.) · American Federation of TeachersECF No. 1, filed October 30, 2026, 47 pages
      [02]American Federation of Teachers

      AFT press release of October 30, 2026, announcing the class action lawsuit. It includes statements from AFT President Randi Weingarten, plaintiffs Elizabeth Schoepflin and David Petley, and Protect Borrowers senior counsel Laura C. Dismore, and links to the complaint.

    2. The Education Department responds through a spokesperson

      Reaction

      An Education Department spokesperson tells CNBC that the agency is correcting coding errors made by the Biden administration that resulted in inaccurate payment counts for some borrowers.

      [03]CNBC

      CNBC report of October 30, 2026, on the AFT lawsuit over Public Service Loan Forgiveness. It quotes Randi Weingarten and plaintiff Elizabeth Schoepflin and carries an Education Department spokesperson's emailed response on payment counts.

Claims

Claims separate what was said from what is contested. Follow each source for the original wording and context.

What's disputed

Disputed claim

American Federation of Teachers

The Education Department is withholding or delaying Public Service Loan Forgiveness buyback decisions, failing to credit borrowers for time worked in public service and clawing back credit it had already given.

What is disputed

The AFT and the borrowers make the claim in their October 30, 2026 complaint, which cites the department's own status reports on the buyback backlog and the plaintiffs' account statements. An Education Department spokesperson says the lowered payment counts correct coding errors made under the Biden administration. The court has not ruled on the claim.

Sources (2)

Response record

Responses

Choose one response filter, or select All responses to see the full record.

3 responses. Newest first.

  1. U.S. Department of EducationFederal department, through a spokesperson's email to CNBCDirectly involved

    Before this statement

    CNBC reports that the borrowers bringing the lawsuit say the department lowered their qualifying payment counts earlier this year, prolonging their path to forgiveness. It reports that an Education Department spokesperson defended the program changes, saying the agency is correcting "coding errors" made by the Biden administration.

    "These errors resulted in inaccurate payment counts for some borrowers"
    Defended or excused

    Responding to: The Education Department is withholding or delaying Public Service Loan Forgiveness buyback decisions, failing to credit borrowers for time worked in public service and clawing back credit it had already given.

    Full statement and sources

    An Education Department spokesperson tells CNBC that the agency is correcting coding errors made by the Biden administration, which the spokesperson says resulted in inaccurate payment counts for some borrowers.

    After the statement

    In the same email, the spokesperson says the department remains committed to ensuring that every qualifying payment is properly credited to a borrower's account.

    Why this label?

    The reference point is the Education Department's handling of Public Service Loan Forgiveness buyback requests and payment counts, which the lawsuit challenges. The spokesperson says the changes to payment counts correct coding errors made under the Biden administration, defending the department's changes.

    This label describes the statement's response within the context above.

  2. Protect BorrowersStudent debt advocacy group and counsel for the plaintiffs, through senior counsel Laura C. Dismore in the lawsuit announcement on its website

    Before this statement

    The announcement, which also quotes AFT President Randi Weingarten and two plaintiffs, quotes Dismore saying that teachers, nurses and public service workers deserve the debt relief Congress promised them and that the AFT will fight to deliver on that promise.

    "AFT is, once again, stepping up to hold Linda McMahon accountable in court for her blatant flouting of the law."
    Condemned

    Responding to: The Education Department is withholding or delaying Public Service Loan Forgiveness buyback decisions, failing to credit borrowers for time worked in public service and clawing back credit it had already given.

    Full statement and sources

    In the lawsuit announcement posted on the Protect Borrowers website, the group's senior counsel Laura C. Dismore says the AFT is again going to court to hold McMahon accountable for what Dismore calls her blatant flouting of the law.

    After the statement

    Dismore goes on to say the administration is so focused on destroying what is left of the Department of Education, and blaming borrowers for the consequences, that it has lost sight of its basic obligation to the American people.

    Why this label?

    The reference point is the Education Department's handling of Public Service Loan Forgiveness buyback requests and payment counts, which the lawsuit challenges. Protect Borrowers, counsel for the plaintiffs, calls McMahon's conduct a blatant flouting of the law, condemning it.

    This label describes the statement's response within the context above.

  3. Randi WeingartenPresident of the American Federation of Teachers and lead plaintiff, in the union's press releaseDirectly involved

    Before this statement

    The AFT's release announces the class action lawsuit Weingarten v. McMahon. Weingarten first says McMahon has ignored her responsibility to help teachers, nurses and first responders under the buyback provision, which she says was adopted to help people hurt by the first Trump administration's handling of student debt.

    "Instead of processing applications in good faith, McMahon has left 90,000 dedicated public employees in the lurch, forcing them further into debt while their applications just sit there."
    Condemned

    Responding to: The Education Department is withholding or delaying Public Service Loan Forgiveness buyback decisions, failing to credit borrowers for time worked in public service and clawing back credit it had already given.

    Full statement and sources

    In the AFT's announcement of the lawsuit, Weingarten says McMahon has left 90,000 public employees in the lurch instead of processing their buyback applications in good faith, pushing them further into debt.

    After the statement

    She adds that the lawsuit demands that McMahon stop stalling and do her job. The release says the buyback backlog had reached nearly 90,000 applications by April.

    Why this label?

    The reference point is the Education Department's handling of Public Service Loan Forgiveness buyback requests and payment counts, which the lawsuit challenges. Weingarten says McMahon has left applicants waiting and pushed them further into debt instead of processing their applications in good faith, condemning that handling.

    This label describes the statement's response within the context above.

Sources

(4)

Original text

Complaint, Weingarten v. McMahon, No. 1:26-cv-03826 (D.D.C.)

Complaint, Weingarten v. McMahon, No. 1:26-cv-03826 (D.D.C.) (opens in a new tab) · American Federation of TeachersECF No. 1, filed October 30, 2026, 47 pages
Read source (opens in a new tab)

Relevant passage: ECF No. 1, filed October 30, 2026, 47 pages

About this source

Class action complaint filed in the U.S. District Court for the District of Columbia by Randi Weingarten, in her capacity as president of the American Federation of Teachers, and borrowers who are public service workers, against the U.S. Department of Education and Secretary Linda McMahon. It asks the court to certify three classes of borrowers seeking Public Service Loan Forgiveness and to order the department to process buyback requests, restore removed payment credit and post qualifying payments. Copy posted by the AFT.

Author
Berger Montague PC and Protect Borrowers, counsel for the plaintiffs
Published
Accessed
Archived copy (opens in a new tab)

Reporting

Class action lawsuit blames Trump officials for student loan forgiveness delays

Read source (opens in a new tab)

Relevant passage: Full article

About this source

CNBC report of October 30, 2026, on the AFT lawsuit over Public Service Loan Forgiveness. It quotes Randi Weingarten and plaintiff Elizabeth Schoepflin and carries an Education Department spokesperson's emailed response on payment counts.

Author
Annie Nova
Published
Accessed

Official statement

'Weingarten v. McMahon': Major Class Action Lawsuit Launched Against Education Secretary Over Student Loan Crisis

Read source (opens in a new tab)

Relevant passage: Full press release

About this source

Protect Borrowers press release of October 30, 2026, on the lawsuit it filed with Berger Montague as counsel for the plaintiffs. It carries the same statements as the AFT release, including one from Protect Borrowers senior counsel Laura C. Dismore, and describes the AFT's earlier suits against the department.

Author
Protect Borrowers
Published
Accessed

Official statement

Weingarten v. McMahon: Major Class Action Lawsuit Launched Against Education Secretary Over Student Loan Crisis

Read source (opens in a new tab)

Relevant passage: Full press release

About this source

AFT press release of October 30, 2026, announcing the class action lawsuit. It includes statements from AFT President Randi Weingarten, plaintiffs Elizabeth Schoepflin and David Petley, and Protect Borrowers senior counsel Laura C. Dismore, and links to the complaint.

Author
American Federation of Teachers
Published
Accessed
Archived copy (opens in a new tab)

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Cite this record

Publisher
The Dispute Index
Title
AFT sues Education Secretary McMahon over stalled Public Service Loan Forgiveness buyback requests and reduced payment counts; the department says it is correcting Biden-era coding errors
First published
Last updated
Permalink
https://disputeindex.com/cases/aft-weingarten-v-mcmahon-pslf-buyback-lawsuit

The Dispute Index. "AFT sues Education Secretary McMahon over stalled Public Service Loan Forgiveness buyback requests and reduced payment counts; the department says it is correcting Biden-era coding errors". First published: 2026-11-02. Last updated: 2026-11-02. https://disputeindex.com/cases/aft-weingarten-v-mcmahon-pslf-buyback-lawsuit