ABA sues Dept of Ed over loan forgiveness denials
- The American Bar Association has filed a lawsuit against the U.S. Department of Education for allegedly reneging on its promise to forgive loans for graduates working for specific public service employers.
- The lawsuit alleges changes were made to its Public Service Loan Forgiveness program, disqualifying four attorneys who made financial decisions based upon their approved work in public education, health and human services and legal assistance.
- The ABA says because it has been disqualified as an approved employer for the PSLF program, it has lost potential and actual workers who joined the organization for its public service repayment eligibility.
This is the latest round of controversy for ED over its trend of uneven rule changing and rule making on financial lending programs and repayment terms. For colleges and universities, it adds an additional burden to loan exit interviews or career development services in informing students on which jobs may not qualify for the program.
But it also could force changes on how students choose or remain in public service degree programs with the lack of incentives for loan repayments. Education and social work could be two major areas where potential policy changes could impact recruitment and retention.