On July 11, 2019, the American Federation of Teachers, President Randi Weingarten and eight members sued Education Secretary Betsy DeVos over loan-forgiveness delays. Public Service Loan Forgiveness, or PSLF, clears the remaining Direct Loan balance after 120 qualifying monthly payments during full-time public-service work. The union cited years of denials and conflicting advice for public workers. The case later settled with full relief for eight plaintiffs and a new review process for others.
Table of Contents
- Why did the union sue?
- Who was supposed to benefit?
- How was the case resolved?
- What if you were denied?
Why did the union sue?
The union said the Department mishandled forgiveness decisions for public workers. According to Selendy Gay PLLC, the suit alleged violations of the Administrative Procedure Act and Fifth Amendment due process Selendy Gay case summary. The filing pointed to erroneous denials, confusing guidance and no clear appeal route.
Denial rates were stark. According to Selendy Gay PLLC, about 98% of applicants faced denial, with only about 1% of roughly 76,000 early applications approved Selendy Gay settlement account. Borrowers also reported servicer misconduct and contradictory advice about application status.
Who was supposed to benefit?
Selendy Gay PLLC explains that Congress created PSLF in 2007 for full-time public servants. The program forgives the remaining Direct Loan balance after 120 qualifying monthly payments.
Qualifying months require full-time employment in eligible public service. That promise mattered to teachers, nurses and other public workers. United Federation of Teachers reporting describes tens of thousands of educators, nurses and other workers caught in the denial wave.
How was the case resolved?
On Oct. 13, 2021, the union and the Department settled under Secretary Miguel Cardona. According to United Federation of Teachers reporting, the deal ended more than two years of litigation that survived dismissal motions UFT settlement report.
The case is Weingarten v. DeVos/Cardona. Selendy Gay PLLC reported that the deal discharged the full remaining balances of the eight individual plaintiffs. The discharges eliminated close to $400,000 in debt after a decade of payments.
What if you were denied?
The settlement created a review path for other denied borrowers. According to Selendy Gay PLLC, borrowers could request reconsideration, and pre-November 2020 denials with at least 10 years of Direct-loan repayment received automatic review Selendy Gay settlement details. The Department also had to send notices stating remaining-payment counts.
United Federation of Teachers reporting notes tens of thousands of educators, nurses and other public workers were not automatically forgiven. They must seek case review and document qualifying payments and employment. Check these items before you act:.
- Confirm denial date and Direct-loan repayment history.
- Gather proof of full-time qualifying employment for each period.
- Request reconsideration and save the payment-count notice.