Teachers union sues DeVos over embattled loan relief program

Associated Press |

A major teachers union is suing the U.S. Education Department over a program designed to forgive student loans for public workers but which has been beset by problems.

The American Federation of Teachers filed a federal lawsuit in Washington on Thursday alleging the Public Service Loan Forgiveness program has been mismanaged, violating the Constitution.

The program was created in 2007 and promised to forgive student loans for graduates who made 120 monthly payments while working as teachers, nurses or other public workers.

Just 1% of applications have been approved. Many applicants say they were wrongly rejected or weren't notified they had the wrong type of loans.

The lawsuit asks for improvements to the application system and a new appeals process.

The department said it does not comment on pending litigation.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not necessarily represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer.

Watchlist

Symbol Last Price Change % Change
AAPL

     
AMZN

     
HD

     
JPM

     
IBM

     
BA

     
WMT

     
DIS

     
GOOG

     
XOM

     
BRK.A

     
FB

     
JNJ

     
WFC

     
T

     
NFLX

     
TSLA

     
V

     
UNH

     
PG