Student-loan borrowers in public service are trapped with debt that 'should be forgiven,' a new lawsuit says

What happened: The American Federation of Teachers filed a lawsuit against the Education Department over stalled Public Service Loan Forgiveness processing, saying buyback applications are not processed and borrowers' payments are illegally rescinded. Key numbers: 90,000 borrowers' buyback applications unprocessed, per the lawsuit; a separate status report cited 88,000 pending applications; Why it matters: The suit, seeking class-action status, says the delays trap borrowers in debt that should be forgiven; plaintiffs say they keep making payments they should not owe while waiting.

The American Federation of Teachers filed a lawsuit against the Education Department over stalled Public Service Loan Forgiveness processing, saying buyback applications are not processed and borrowers' payments are illegally rescinded.

The suit, seeking class-action status, says the delays trap borrowers in debt that should be forgiven; plaintiffs say they keep making payments they should not owe while waiting.