Judges strike down Trump administration student loan forgiveness overhaul

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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.

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In Massachusetts, U.S. District Judge Myong Joun struck down the changes, finding the agency lacked legal authority and could potentially violate the First Amendment, as well as threaten to force the administration’s viewpoints on employers.

“The Department cannot create new criminal prohibitions through rulemaking,” Joun wrote in his opinion, adding: “Indeed, the record further demonstrates ?that the ?Final Rule has already chilled protected speech.”

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U.S. District Judge Amir Ali in Washington, D.C., separately struck down the rule in a case brought on by four nonprofits that advocate for immigration rights, among other issues.

Under Secretary of Education Nicholas Kent said the agency is evaluating next steps for its “commonsense policy.”

“The Public Service Loan Forgiveness Program is intended to support Americans who serve the public good, not to subsidize organizations that engage in terrorism, facilitate illegal immigration, or support the mutilation of children,” he said in a statement.

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