Judge blocks rule to strip public service workers of student loan forgiveness
Summary
A federal judge stopped the Trump administration from blocking public service workers from getting federal student loan forgiveness if their employers are seen as having a "substantial illegal purpose." The judge agreed with states and groups that said the rule unfairly targets organizations supporting immigration rights, transgender healthcare, and other causes.Key Facts
- The Public Service Loan Forgiveness Program forgives federal student loans after 10 years of work with government or non-profit employers.
- The Trump administration created a rule to exclude employers involved in activities it called a "substantial illegal purpose," including support for illegal immigration and transgender healthcare for minors.
- More than one million borrowers have received loan forgiveness through this program since 2007.
- The new rule was set to start on July 1 but was blocked by US District Judge Myong Joun in Boston.
- The judge sided with Democratic-led states, cities, and non-profits that sued to stop the rule.
- The lawsuit said the education department does not have the power to add exceptions to the forgiveness program.
- This ruling is the second recent legal loss for the Trump administration’s efforts to change the federal student loan system.
- Another judge recently blocked a rule limiting student loan amounts for graduate nursing and healthcare students.
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