US EditionNearly 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.
143 Articles
143 Articles
Arizona is suing to stop Trump from targeting student loan forgiveness for ideological reasons
Illustration by iStock / Getty Images PlusFor the 29th time so far this year, Arizona is suing the Trump administration, this time to block the U.S. Department of Education from cancelling public service student loan forgiveness for employees of government agencies and organizations that help undocumented immigrants, promote diversity, equity and inclusion or take part in political protest. “Public service should never be weaponized for politic…
Aspen Times
Glenwood Springs Post IndependentColorado 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. The new rule, finalized Oct. 30 and scheduled to take effect in July 2026, allows the U.S. Department of Education to exclude state and local governments and nonprofits from the Public Service Loan Forgiveness program if they’re found t…
Trump's DOE sued (twice) for disqualifying LGBTQ+ nonprofit workers from loan forgiveness
Two lawsuits have been filed against Donald Trump's Department of Education over its new policy that prevents workers of LGBTQ+ nonprofits from receiving student loan forgiveness.The department published a rule in the Federal Register on Friday that allows the Secretary of Education, Linda McMahon, to disqualify government and nonprofit employers that do not align with the Trump administration’s agenda from participating in the Public Service Lo…
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