Federal Judge Blocks Changes to Student Loan Forgiveness Program

The ruling prevents the Education Department from excluding specific nonprofit and government employers from the student loan forgiveness program, ensuring that current and future public service workers remain eligible for debt cancellation regardless of their employer's political activities.

• •U.S. District Judge Myong Joun vacated the Education Department's new eligibility rules for the Public Service Loan Forgiveness (PSLF) program.
• •The court ruled the Education Department overstepped its legal authority and threatened First Amendment free speech protections.
• •The blocked rules would have allowed the Education Secretary to exclude employers deemed to have a 'substantial illegal purpose'.
• •The administration's definition of 'illegal activity' included hormone therapy or puberty-delaying drugs, labeled as 'chemical castration'.
• •The ruling prevents the exclusion of nonprofits and government organizations based on their support for causes at odds with administration priorities.
• •The PSLF program was established in 2007 to forgive federal student loans for individuals working in public service for 10 years.
• •The program has provided loan cancellation for over 1 million Americans to date.
• •The judge noted the Education Department provided no justification for the sweeping nature of the rule, given their own estimate that fewer than 10 employers would be affected annually.
• •The lawsuit was brought by a coalition of more than 20 states, nonprofit groups, and cities.