Summary
A group of nearly two dozen attorneys general has sued the Education Department over a new rule for the Public Service Loan Forgiveness Program (PSLF). The rule requires employers to avoid activities considered illegal by the Trump administration to qualify for loan forgiveness. The rule is set to start on July 1, 2026, and faces opposition for allegedly being used as a political tool.
Key Facts
- The lawsuit involves attorneys general from various states challenging a new PSLF rule by the Education Department.
- The rule requires employers not to engage in activities that have a "substantial illegal purpose" to qualify for PSLF.
- PSLF forgives the remaining balance on student loans for eligible workers in public service after ten years.
- New rule is part of broader measures against what the Trump administration terms "anti-American activists."
- New York Attorney General Letitia James argues the rule is illegal and politicizes PSLF.
- The PSLF program was signed into law in 2007 by former President George W. Bush.
- Under Secretary of Education Nicholas Kent defended the rule as a measure against criminal activities.
- The Trump administration previously changed federal student loan repayment options.
