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NewsNBC Bay Area — PoliticsJune 30, 2026California

Federal Judge Blocks Changes to Student Loan Forgiveness Program

A federal judge has struck down a Trump administration rule that would have allowed the Education Department to exclude certain employers from the Public Service Loan Forgiveness program. The court ruled that the administration overstepped its authority and created potential First Amendment concerns by attempting to define illegal activity through agency rulemaking.

student loanseducationpublic servicelawsuitFirst Amendment
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Why It Matters

The ruling prevents the Education Department from disqualifying nonprofit and government employers from the program based on the administration's criteria, ensuring that employees of those organizations remain eligible for loan cancellation after 10 years of service.

Key Facts

  • U.S. District Judge Myong Joun vacated the Education Department's new rules for the Public Service Loan Forgiveness program.
  • The ruling prevents the Education Department from excluding employers based on their support for causes deemed at odds with administration priorities.
  • The court found the Education Department overstepped its power by attempting to create new criminal prohibitions through agency rulemaking.
  • The judge cited First Amendment concerns regarding free speech and the imposition of policy views on employers.
  • The Education Department's own estimates suggested fewer than 10 employers would be barred from the program annually under the new rules.
  • The Public Service Loan Forgiveness program was established in 2007 to forgive federal student loans after 10 years of public service work.
  • The program has provided loan cancellation for more than 1 million Americans to date.
  • The ruling was issued in response to lawsuits filed by more than 20 states and a coalition of nonprofits and cities.
  • More than 100 supporting briefs were filed by parties challenging the rules, with zero briefs filed in support of the administration's changes.

Who's Mentioned

organizationTrump administration“The administration that proposed the overhaul of the loan forgiveness program.”personMyong Joun“U.S. District Judge in Massachusetts who issued the ruling.”other100“Number of supporting briefs filed against the administration's rule.”other10“Estimated number of employers the department expected to bar per year.”other1 million“Number of Americans who have had loans canceled under the program.”other20“Number of states that filed lawsuits against the rule.”organizationU.S. Education Department“The federal agency whose rule was vacated by the court.”otherPublic Service Loan Forgiveness“A federal program created in 2007 to forgive student loans for public service wo”