Judge strikes down Trump administration overhaul of student loan forgiveness program
The judge said the Education Department exceeded its authority and cited a rule that could affect fewer than 10 employers a year.
- On Tuesday, District Judge Myong Joun struck down a Trump administration overhaul of the Public Service Loan Forgiveness program, ruling the Education Department's changes risked becoming a tool for political retribution.
- Last year, the Trump administration attempted to add eligibility rules stripping benefits from workers whose employers were deemed to have a "substantial illegal purpose," including trafficking or "chemical castration," defined to include hormone therapy.
- More than 20 states and various nonprofits challenged the rules; Joun noted that more than 100 supporting briefs were filed for the challengers, while none supported the Final Rule.
- Asserting the department overstepped its power and threatened First Amendment protections, the judge vacated the Final Rule, noting fewer than 10 employers would be barred annually under the sweeping policy.
- Congress created Public Service Loan Forgiveness in 2007 to encourage public service, a program that has canceled loans for more than 1 million Americans; the department did not immediately respond to requests for comment.
101 Articles
101 Articles
Judges strike down Trump rule on loan forgiveness for public servants
Two federal courts struck down a Trump administration rule that would have allowed the Education Department to disqualify employers from participating in a student loan forgiveness program for public servants.
Federal Judges Strike Down Loan Forgiveness Limits for Workers at Activist Groups
A pair of federal judges on Tuesday struck down a Trump administration rule that would have denied student loan forgiveness to public service workers employed by activist organisations accused of pursuing an “illegal purpose.” The judges ruled on June 30 in separate cases brought by advocates who argued that the changes risked turning the program into “a way of silencing local governments and nonprofit organizations that do work that goes agains…
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