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Student loan borrowers who are entitled to debt forgiveness but haven’t been able to get it under the Trump administration may face an “enormous tax liability,” the American Federation of Teacher said in a new court document.
The teacher’s union, which represents some 1.8 million members, launched its legal challenge against the U.S. Department of Education in March, and is now seeking class action status.
The AFT has said Trump officials are denying borrowers access to student loan forgiveness programs, including income-driven repayment plans, or IDRs. Those plans tie a borrower’s monthly bill to their income and lead to debt cancellation after a certain period.
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