Trump Administration Halts Student Loan Forgiveness Lawsuit Amid Government Shutdown Chaos

Trump Administration Halts Student Loan Forgiveness Class Action Lawsuit Amid Government Shutdown The Trump administration has filed a motion to pause a potential class action lawsuit against the Department of Education, citing the ongoing government shutdown as a reason for the delay. The lawsuit, which alleges that the department has stalled student loan forgiveness, was set to proceed in court on April 23, 2025. According to court documents, Justice Department lawyers argued that the shutdown makes it necessary to halt the legal proceedings and extend relevant deadlines. "The government shutdown is a critical factor in this decision," said a spokesperson for the Justice Department. "We cannot continue with litigation when our own funding has been impacted." The lawsuit, which was filed on behalf of students who claim they were unfairly denied loan forgiveness, seeks damages and an order requiring the Department of Education to process their applications. "This is a clear example of the Trump administration's disregard for students struggling to pay off debt," said a spokesperson for the plaintiffs' law firm. The government shutdown, which began on October 1, 2025, has already disrupted various federal agencies and programs. The move to pause the lawsuit has raised concerns among advocates for student loan forgiveness, who argue that it will only further delay relief for those in need. "This is a classic example of how the Trump administration uses bureaucratic maneuvering to avoid accountability," said a spokesperson for the National Association of Student Loan Advocates. "We urge the court to reject this motion and allow the lawsuit to proceed." The Department of Education has faced criticism in recent months over its handling of student loan forgiveness applications. In response, the department has maintained that it is working diligently to process applications while also addressing concerns about the program's effectiveness. The court will now consider the Trump administration's request to pause the lawsuit. A decision on this matter is expected in the coming weeks. *Reporting by Forbes.*