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Nearly two dozen states sue Trump admin over rule limiting student loan forgiveness for public servants

  • New York Attorney General Letitia James led a coalition of state attorneys general in suing the Trump administration over a U.S. Department of Education rule limiting Public Service Loan Forgiveness eligibility on October 21, 2025.
  • The U.S. Department of Education's final rule, released last week, redefines "qualifying employer" and excludes organizations described as "that engage in unlawful activities" such as "supporting terrorism and aiding and abetting illegal immigration" under Public Service Loan Forgiveness, enacted in 2007.
  • Scale data show the program's reach: more than 40 million Americans hold student loans, outstanding debt exceeds $1.6 trillion, and over 9 million borrowers may be eligible for PSLF.
  • A coalition of cities, labor unions and nonprofit organizations filed suit Monday; Attorney General James called the rule `a political loyalty test` and emphasized `Public Service Loan Forgiveness was created as a promise to teachers, nurses, firefighters, and social workers`,
  • President Donald Trump has been a vocal critic of the Biden administration's PSLF expansions, and the U.S. Department of Education did not immediately respond to requests about the final rule.
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Colorado joins multistate lawsuit against Trump administration’s restrictions to student loan forgiveness program

Colorado Attorney General Phil Weiser joined 21 other state attorneys Monday in filing a lawsuit over a new Trump administration policy that would limit eligibility for a popular student loan forgiveness program.

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The spokesman-Review broke the news in Spokane, United States on Monday, November 3, 2025.
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