Federal judges strike down Trump overhaul of public service loan forgiveness
Two federal judges struck down the Trump administration’s overhaul of Public Service Loan Forgiveness, the program that cancels federal student debt for government and nonprofit workers after 10 years of payments. The rulings came a day before the new rules were to take effect.
The Education Department had moved to add eligibility rules denying forgiveness to workers whose employers were deemed to have a “substantial illegal purpose” — language critics said could be used to cut off nonprofits and public agencies whose work conflicts with administration priorities. In Massachusetts, U.S. District Judge Myong Joun vacated the changes, finding the department overstepped its authority and threatened First Amendment free-speech protections. In Washington, D.C., District Judge Amir Ali issued a parallel ruling in a case brought by nonprofit organizations.
The decisions leave the existing program in place for now. The core dispute is whether an agency can attach content-based conditions to a benefit Congress created in 2007 — a question likely to shape further litigation and any narrower rule the department attempts.