According to ministry data, about 1% of the more than 73,000 borrowers who have applied for the Public Service Loan Repayment Program have received relief since their inception.
The prosecution criticizes the Ministry of Education for denying candidates "an arbitrary and capricious motive" and for failing to put in place a process to review wrong decisions or to ensure that loan management companies borrowers with specific indications of their eligibility.
"Instead of helping the millions of Americans who owe debt relief under the public service loan forgiveness program, DeVos hurts them and impasses them. And instead of working with lawmakers to improve the program that millions of teachers, firefighters, nurses and first responders deserve, DeVos has vandalized it, "said Randi Weingarten, president of the American Federation of Teachers. in a statement.
A spokeswoman for the Ministry of Education did not immediately respond to a request for comment.
The Public Service Loan forgiveness program was designed to encourage indebted individuals to maintain lower-paying jobs than teachers, social workers, public advocates and nurses. Those who work for a qualified non-profit or government employer can apply for a loan forgiveness after 10 years of payments. But a borrower must have the right type of federal student loan and be enrolled in a specific type of repayment plan.
Eight educators are also named in the complaint, which asks for a loan remission in their particular cases. He also asks the department to adjust the application process and put in place an appeal process.
Many borrowers complained about the difficulty of the program rules, and some found that they were not eligible until after the end of the decade. According to data from the department, about half of rejected applicants did not have sufficient eligible payments, a quarter of them lacked information and 16% did not have eligible loans.
But the new lawsuit is different and blames the Ministry of Education.