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NewsNBC Miami PoliticsJuly 1, 2026Miami-Dade

Federal Judge Blocks Changes to Student Loan Forgiveness Program

A federal judge has vacated new Trump administration rules that would have allowed the Education Department to exclude certain employers from the Public Service Loan Forgiveness program. The court ruled that the agency exceeded its authority and created potential First Amendment conflicts by attempting to define illegal activity through administrative 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 definitions of illegal activity, ensuring current eligibility standards remain in place for public service workers.

Key Facts

  • U.S. District Judge Myong Joun vacated the Education Department's new eligibility rules for the Public Service Loan Forgiveness program.
  • The ruling prevents the Education Department from excluding employers based on their support for causes deemed to have a 'substantial illegal purpose'.
  • The court found the Education Department overstepped its authority by attempting to create new criminal prohibitions through administrative rulemaking.
  • The judge ruled the new rules threatened to violate First Amendment free speech protections.
  • The Public Service Loan Forgiveness program was established by Congress in 2007 to forgive federal student loans after 10 years of public service.
  • The Education Department's own estimates suggested fewer than 10 employers would be barred from the program per year under the new rules.
  • The program has provided loan cancellation to more than 1 million Americans.
  • The lawsuit was brought by a coalition of more than 20 states, nonprofit groups, and cities.

Who's Mentioned

other20“Number of states that filed lawsuits against the rule changes.”organizationTrump administration“The administration that proposed the student loan program overhaul.”other100“Number of supporting briefs filed by groups challenging the rules.”organizationU.S. Education Department“The federal agency whose rule changes were vacated by the court.”other10“Number of years of service required for loan forgiveness; also the estimated num”other1 million“Number of Americans who have had loans canceled through the program.”personMyong Joun“U.S. District Judge in Massachusetts who issued the ruling.”