Two federal judges on Tuesday blocked the Trump administration from implementing new restrictions on a student loan forgiveness program that would have barred public service workers from receiving debt relief if their employers are deemed to have a “substantial illegal purpose.”
The rulings, issued by Biden-appointed judges in Massachusetts and Washington, D.C., came just one day before the new eligibility rules were set to take effect.
The Trump administration had sought to add new rules to the Public Service Loan Forgiveness (PSLF) program as part of its targeted overhaul of government programs that do not align with the administration’s priorities.
More than 20 states, along with a coalition of nonprofit groups, challenged the rule in a pair of lawsuits, arguing it would allow the Department of Education to target organizations that support causes considered disfavorable to the administration, including transgender healthcare and immigration advocacy.
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