Federal Judge Blocks Changes to Student Loan Forgiveness Program

The ruling prevents the Education Department from disqualifying nonprofit and government employers from the student loan forgiveness program based on the administration's assessment of their activities, ensuring current eligibility standards remain in place for public service workers.

• •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 deemed to have a 'substantial illegal purpose' from the program.
• •The judge ruled the department overstepped its legal authority and threatened First Amendment free speech protections.
• •The blocked rules would have allowed the education secretary to exclude groups involved in activities like 'chemical castration' (including puberty-delaying therapy), illegal immigration, or supporting terrorist organizations.
• •The Public Service Loan Forgiveness program was established in 2007 to forgive federal student loans for those working in government or nonprofit jobs for 10 years.
• •The program has provided loan cancellation for over 1 million Americans.
• •The Education Department's own estimates suggested the new rules would have affected fewer than 10 employers per year.
• •The ruling was in response to lawsuits filed by more than 20 states and a coalition of nonprofit groups and cities.
• •Over 100 supporting briefs were filed by groups challenging the rules, with none filed in support of the administration's changes.