The teacher student loan forgiveness lawsuit of 2019 revealed major flaws in the Public Service Loan Forgiveness (PSLF) program. Teachers, dedicated to shaping future generations, are not receiving the fair treatment or support they were promised under federal student loan forgiveness policies.

Over the years, numerous lawsuits have been filed against the U.S. government and its third-party loan servicers. One of the most notable came in 2019, when the American Federation of Teachers (AFT) filed a lawsuit against the Department of Education. The union argued that the PSLF system was so dysfunctional it violated both the Constitution and federal law.

Background on Teacher Loan Forgiveness

In theory, student loan forgiveness for teachers should be simple. To qualify under PSLF, public service employees—including teachers—must:

  1. Work full-time in public service for 10 years
  2. Make 120 qualifying, on-time monthly payments
  3. Hold eligible federal Direct Loans
  4. Enroll in an income-driven repayment plan

Despite these seemingly straightforward requirements, many borrowers weren’t properly informed about program eligibility, especially regarding loan type and repayment plans.

Lawsuit Details: American Federation of Teachers vs. Department of Education

The AFT lawsuit filed in 2019 aimed to correct the severe breakdown in the loan forgiveness process. The suit had two main goals:

  1. Compel the Department of Education to overhaul the public service loan forgiveness system to meet legal standards
  2. Create an appeals process for borrowers denied loan forgiveness unfairly

When the PSLF program was first launched, the goal was to attract qualified professionals—especially teachers—into public service roles by offering student loan forgiveness after a decade of service. But this promise has largely gone unfulfilled.

What the Numbers Reveal

According to journalist Chris Arnold’s NPR article Broken Promises, fewer than 1% of applicants who believed they qualified for forgiveness were actually approved.

“Only 1% of the people who think they’ve made their 10 years of payments and apply for loan forgiveness are getting approved.” – Chris Arnold, 2019

This has left countless teachers and public service employees frustrated, misled, and financially burdened by a system that failed to deliver on its commitments.

Navigating Teacher Student Loan Forgiveness

The student loan landscape continues to evolve, with changing laws, regulations, and political agendas. Keeping up with all these changes can feel like a full-time job.

If you’re a teacher looking to understand or apply for student loan forgiveness, working with professionals can help you avoid costly errors. Hope Credit specializes in helping public servants—including teachers—navigate forgiveness programs, income-driven repayment plans, and appeal options.

Need Help with Teacher Loan Forgiveness?

Let us help you find the best path forward. Whether you’re applying for forgiveness, facing a denial, or unsure where to start—we’re here for you.

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Sources:

Arnold, Chris. (2019, July 15). Broken Promises: Teachers Sue U.S. Over Student Loans That Weren’t Forgiven.NPR