Student Loan Update: Trump Admin's Major Policy Change Challenged in Court
Summary
Four major U.S. cities and several labor unions are suing President Trump's administration over a new rule that could limit eligibility for the Public Service Loan Forgiveness program. The rule allows the Education Department to deny loan relief to workers if their employers are involved in activities considered illegal. The lawsuit argues that this gives too much power to the education secretary.Key Facts
- The lawsuit was filed in a federal court in Massachusetts.
- The new rule targets the Public Service Loan Forgiveness program.
- The rule lets the Education Department deny loan forgiveness if employers are involved in illegal activities.
- The plaintiffs include four major U.S. cities and several labor unions.
- The lawsuit claims the rule gives the education secretary too much power.
- Federal officials say the rule prevents taxpayer money from supporting illegal actions.
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