Filed Date: March 19, 2025
Case Ongoing
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This case arose when a student loan borrower found herself locked out of the system designed to make her loan repayments affordable. On March 19, 2025, Ashley N. Morgan, an individual student loan borrower, filed suit in the U.S. District Court for the Western District of Texas, Austin Division against the U.S. Department of Education. Representing herself pro se, Morgan sought immediate court intervention. She contended that the Department of Education was unlawfully obstructing her access to income-driven repayment plans, which she argued they were legally obligated to provide. Her claims were based on the Department’s alleged failure to follow proper procedures under the Higher Education Act and Administrative Procedure Act, and that their actions were unreasonable and not in line with the law.
Prior to this legal challenge, Morgan was enrolled in an Income-Based Repayment (IBR) plan and a Pay As You Earn (PAYE) plan for her federal student loans, with a deadline of March 1, 2025, to recertify her income. However, she claimed that in mid-February 2025, she discovered that the Department of Education had removed the online forms required for recertification from the studentaid.gov website without any prior notification. As a direct consequence of not being able to recertify her income, Morgan stated that her monthly student loan payments surged from $507.19 to $2,463.58. To manage this sudden financial strain, she secured a temporary three-month hardship forbearance from her loan servicer, Nelnet. However, she noted that interest would continue to accumulate during this period, and these months would not contribute towards her loan forgiveness progress. She also expressed concerns about the potential for the unpaid interest to be added to her loan balance and the risk of losing her eligibility for income-driven repayment options in the future.
In her request to the court for a temporary restraining order and preliminary injunction, filed on March 20, 2025, Morgan asked the Court to prevent the defendants from collecting loan payments at the increased rate, charging the higher interest, adding unpaid interest to her principal loan balance, deeming her ineligible for income-driven repayment plans (IBR, ICR, and/or PAYE), and transferring her student loans to a different agency or loan holder. She asserted that without immediate judicial relief, she would face significant and irreparable financial harm, potentially leading to the default of her student loans. Morgan also voiced concerns about public statements made by Secretary McMahon regarding the potential dismantling of the Department of Education, emphasizing the urgency of court intervention before further administrative changes could negatively impact her situation. This case was assigned to Judge Alan D. Albright.
On March 25, 2025, Judge Albright scheduled a preliminary injunction hearing for April 10, 2025. Nevertheless, acknowledging the possibility that Morgan might now have access to her income recertification forms based on information available on the Federal Student Aid website as of March 27, 2025, Judge Albright issued an order mandating that both Morgan and the Department submit status reports by March 28, 2025.
This case is ongoing.
Summary Authors
Aanvi Jhaveri (3/31/2025)
For PACER's information on parties and their attorneys, see: https://www.courtlistener.com/docket/69759329/parties/morgan-v-mcmahon/
Morgan, Ashley N. (Texas)
Goode, David B. (Texas)
See docket on RECAP: https://www.courtlistener.com/docket/69759329/morgan-v-mcmahon/
Last updated April 21, 2025, 2:56 p.m.
State / Territory: Texas
Case Type(s):
Presidential/Gubernatorial Authority
Special Collection(s):
Trump Administration 2.0: Challenges to the Government
Key Dates
Filing Date: March 19, 2025
Case Ongoing: Yes
Plaintiffs
Plaintiff Description:
Ashley N. Morgan, an individual student loan borrower.
Plaintiff Type(s):
Public Interest Lawyer: No
Filed Pro Se: Yes
Class Action Sought: No
Class Action Outcome: Not sought
Defendants
U.S. Department of Education (- United States (national) -), Federal
Defendant Type(s):
Case Details
Causes of Action:
Administrative Procedure Act, 5 U.S.C. §§ 551 et seq.
Available Documents:
Outcome
Prevailing Party: None Yet / None
Nature of Relief:
Source of Relief:
Issues
General/Misc.: