Recent reporting shows the American Federation of Teachers has asked a federal court to order the U.S. Department of Education to resume canceling loans for borrowers who already meet statutory criteria for forgiveness. The suit and related coverage highlight a large backlog of Public Service Loan Forgiveness and other forgiveness requests — and an urgent timing issue for borrowers because certain tax protections for forgiven debt are temporary. If you have federal student debt or are pursuing federal education loan forgiveness, now is the time for focused action and good legal advice.
What the reporting found
The AFT’s filing seeks an injunction to force the Education Department to process cancellations for borrowers who meet the requirements under programs such as IBR, PAYE and ICR, and to address thousands of unprocessed PSLF “buyback” requests. • Reporting shows the PSLF buyback queue has grown much faster than it has been processed; in recent months the department received many more applications than it closed, leaving tens of thousands of borrowers waiting for review. That backlog has already pushed decision timelines out by months.
There is an important timing risk: a temporary rule that keeps forgiven debt from being taxed is scheduled to expire on January 1, 2026. Delays in processing could therefore create unexpected tax bills for some borrowers if cancellations are not completed within that window.
Why this matters to you
Reporting about delays and litigation is not just abstract policy news. Slow processing and administrative uncertainty can cause real financial harm:
- Borrowers who are eligible for forgiveness but remain in limbo may continue to accrue interest or face collection actions while they wait for administrative decisions. The Department of Education’s repayment and default rules mean that unresolved applications can translate to tangible credit and cash-flow consequences.
- If your cancellation is delayed past the temporary tax relief window, an otherwise tax-free discharge could become taxable income, changing long-term planning for housing, retirement, or family needs. KQED
Those are the very practical reasons to treat this moment as more than background news: your documentation, your servicer records, and the timing of applications can all affect whether your case is resolved favorably and on time.
Steps every borrower should take now
Below are concrete steps we recommend for any borrower with federal student debt who is pursuing forgiveness or who believes they qualify:
- Document everything and centralize records. Keep employment certifications, W-2s, pay stubs, and any correspondence with your servicer. This is essential evidence for forgiveness and for any administrative appeal or legal step.
- Request full payment histories and account notes from your servicer. Confirm that qualifying payments (including any “buyback” months) are correctly recorded. If records are incomplete, request corrections in writing. StudentAid.gov has PSLF and forgiveness resources and tools you should use.
- File PSLF reconsideration or follow-up requests where appropriate. If your PSLF tracker is missing eligible months, use the official reconsideration processes and preserve proof of submission. State and agency pages that track PSLF processing note long backlogs and advise borrowers to file reconsideration when counts appear wrong.
- Monitor tax timing and plan accordingly. Work with a tax advisor if you expect forgiveness that might fall on either side of January 1, 2026, so you can model worst-case and best-case tax outcomes.
- Consider escalation when appropriate. If you are clearly eligible for cancellation but your case sits unprocessed, legal options — from administrative appeals to court filings — can sometimes move a stalled file. The AFT’s lawsuit illustrates the kinds of legal pressure that can lead agencies to act.
How Kaplan Law Firm can help
At Kaplan Law Firm we combine familiarity with student loan law and practical, borrower-first advocacy. As your student loan advisor and lawyer for student loans, we offer a focused student loan consultation that includes:
- A full audit of your loan types, servicer records, and payment history to identify missing credits toward forgiveness.
- Assembly and review of the documentation you’ll need for PSLF, IDR discharge, or other federal education loan forgiveness pathways.
- Direct communications with servicers or the Department of Education on your behalf, and—when appropriate—preparation of administrative appeals or legal filings to enforce your rights.
- Modeling of tax exposure and planning options if your forgiveness timing is uncertain.
We approach every case with a supportive, problem-solving mindset. Our work is practical: get the paperwork in order, close gaps in your record, and push the right levers so you don’t lose relief because of clerical delay or missed deadlines.
Quick checklist to bring to a student loan consultation
- Latest account statements and full payment history (download from your servicer).
- Employment certifications and W-2s for any years used to qualify for PSLF.
- Copies of correspondence with your servicer or the Department of Education.
- A note of any prior attempts to correct your payment history or file reconsideration.
Bringing this material to a focused student loan consultation lets us quickly determine whether your case is straightforward or whether it would benefit from immediate legal advocacy.
If you’re waiting on a forgiveness decision, believe you qualify but your account shows otherwise, or simply want a clear plan for handling federal student debt in this uncertain moment, schedule a consultation with Kaplan Law Firm. We will review your situation, explain your options under current student loan law, and help you choose a path that protects your finances while you wait for federal education loan forgiveness to catch up with the law.
Contact us to schedule a student loan consultation with a lawyer for student loans and get a practical, documented plan for moving forward.
