A retired student-loan borrower is fighting for public service debt relief. Now he's named in a lawsuit against Trump.

Donald Knierim is fighting to have his Public Service Loan Forgiveness processed. Vanessa Valadez for BI A retired student-loan borrower is fighting for public service debt relief. Now he's named in a lawsuit against Trump. Donald Knierim is fighting to have his Public Service Loan Forgiveness processed. Vanessa Valadez for BI After working in public service for over a decade, Donald Knierim is still waiting for student-loan forgiveness.Now he's participating in a lawsuit in hopes of getting relief for himself — and thousands of others.Knierim first spoke to Business Insider earlier in October. In 2015, the 71-year-old started working for Metra, Chicago's commuter railway. His goal was to stay on the job for a decade in order to earn Public Service Loan Forgiveness, which forgives student debt for government and nonprofit workers after 10 years.He thought he had succeeded in November 2025, when his Federal Student Aid dashboard read, "Congratulations! You've satisfied your obligation, and no additional payments are required for this loan." Knierim received an initial notice that he achieved Public Service Loan Forgiveness. Vanessa Valadez for BI So he retired from Metra, with the belief that his student-loan payments were in the past. Months later, he received another notice: 15 payments that had previously counted toward his forgiveness progress were now rescinded, and his outstanding balance was reinstated.On Friday, the American Federation of Teachers filed a lawsuit that includes Knierim as a declarant, alleging that the Department of Education illegally clawed back borrowers' PSLF payments and is stalling debt relief for thousands.The stakes are high for Knierim; he cannot return to work because caring for his wife, who is dealing with serious health issues, is a full-time job."He lives on a fixed income, and diverting those funds to his student loans and away from mounting household expenses and savings puts his wife and him in a financially precarious situation," the lawsuit said.Challenges with PSLF have mounted over the past few months, with borrowers reporting inaccurate payment counts and stalled applications to the buyback process, which allows a borrower to "buy back" time spent in deferment or forbearance if it would put them at the relief threshold. Knierim is named in a lawsuit against the Education Department regarding stalled debt relief for thousands of PSLF borrowers. Vanessa Valadez for BI Ellen Keast, communications director for the Education Department's undersecretary, said in a statement that the PSLF buyback process requires "case-by-case reviews and extensive paperwork.""FSA has already begun transitioning this work to loan servicers as part of a broader effort to streamline operations, reduce administrative burden, and modernize the process," Keast said. "Rather than acknowledge these realities, the union has yet again chosen litigation and election-year theatrics."Knierim said he's grateful to be part of the lawsuit and to have "a strategic path forward.""I have a flawless payment history," Knierim said. "I have never missed a payment, and I paid what they told me to pay." The burden of stalled student-debt reliefKnierim has spent months seeking clarity on his account. He called and sent letters to Federal Student Aid and the ombudsman's office, and he even offered to pay a lump-sum amount if it would qualify him for PSLF.He said no one ever responded to that offer. Worried that any further action on his account could jeopardize his loan forgiveness, he didn't make any payments during this time, so he was marked as delinquent and was set to default in November. The consequences of defaulting can be severe, including wage garnishment and the seizure of federal benefits like Social Security, which Knierim relies on. Student-loan borrowers risk defaulting if they cannot afford payments while their relief is being processed. Vanessa Valadez for BI His forbearance request was approved days before he was set to default, and a "reconsideration request" on his PSLF status is in progress.The AFT's lawsuit said that Knierim's dilemma is likely "widespread, affecting thousands, if not tens of thousands, of borrowers." One of the plaintiffs in the lawsuit, Elizabeth Schoepflin, had 14 payments toward PSLF rescinded, extending her repayment timeline by nearly a year and a half."Her servicer confirmed that there were no changes to her account that would explain the Department's clawback, and could not tell her why the Department took away the qualifying months," the lawsuit said.Knierim said he's been diligent with his payments and that customer service representatives repeatedly assured him he was on track for loan forgiveness. He's hopeful he'll get the relief he's paid years toward and can continue his retirement with his student loans officially behind him."If I have to restore that payment, it's going to put my wife and me in a bad situation," Knierim said. "We're too tight in retirement to be shelling out money for stuff that we can't afford."Have a story to share about student loans? Contact this reporter at asheffey@businessinsider.com. Student Debt Spiral Student Debt Student Loans More Most popular Business Insider tells the stories you want to know about the world of business, technology, and finance Business Insider tells the stories you want to know about the world of business, technology, and finance Business Insider tells the stories you want to know about the world of business, technology, and finance Business Insider tells the stories you want to know about the world of business, technology, and finance Business Insider tells the stories you want to know about the world of business, technology, and finance Business Insider tells the stories you want to know about the world of business, technology, and finance Ayelet Sheffey is a senior reporter at Business Insider covering education and student loans. She has appeared on shows including C-SPAN, CBS News, NPR, and SiriusXM to discuss her student-loan coverage, including her investigation on private student-loan lending.She graduated from American University in 2020 with a bachelor's degree in journalism. You can reach her via email at asheffey@businessinsider.com or message her securely on Signal at asheffey.97. You can also find her on LinkedIn, and on Reddit at the username u/Ayelet_Sheffey_BI.