US EditionNearly two dozen states sue Trump admin over rule limiting student loan forgiveness for public servants
- New York Attorney General Letitia James led a coalition of state attorneys general in suing the Trump administration over a U.S. Department of Education rule limiting Public Service Loan Forgiveness eligibility on October 21, 2025.
- The U.S. Department of Education's final rule, released last week, redefines "qualifying employer" and excludes organizations described as "that engage in unlawful activities" such as "supporting terrorism and aiding and abetting illegal immigration" under Public Service Loan Forgiveness, enacted in 2007.
- Scale data show the program's reach: more than 40 million Americans hold student loans, outstanding debt exceeds $1.6 trillion, and over 9 million borrowers may be eligible for PSLF.
- A coalition of cities, labor unions and nonprofit organizations filed suit Monday; Attorney General James called the rule `a political loyalty test` and emphasized `Public Service Loan Forgiveness was created as a promise to teachers, nurses, firefighters, and social workers`,
- President Donald Trump has been a vocal critic of the Biden administration's PSLF expansions, and the U.S. Department of Education did not immediately respond to requests about the final rule.
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Coalition sues to protect student loan forgiveness
(The Center Square) – Democratic attorney generals from 22 jurisdictions sued the U.S. Department of Education Monday over its new rule limiting Public Student Loan Forgiveness for government and nonprofit workers.
Illinois sues over rule change in forgiving federal public service student loans
Illinois Attorney General Kwame Raoul joined 21 other attorneys general in suing the Trump administration over changes to the way public servants have their student loans forgiven.The U.S. Education Department issued a new rule Friday threatening to deem employers, including state governments, as having “substantial illegal purpose,” and revoking them from the Public Service Loan Forgiveness program. According to the lawsuit, the Trump administr…
Oregon Capital Chronicle
Salem ReporterOregon sues Trump admin for attempt to restrict public service loan forgiveness
Oregon Attorney General Dan Rayfield said the Public Service Loan Forgiveness program helps recruit and retain many state employees. (Photo by Mia Maldonado/Oregon Capital Chronicle)A coalition of Democratic states are suing the U.S. Department of Education to stop new eligibility restrictions for the program that allows student loan forgiveness for government and nonprofit employees after 10 years of service. The Public Service Loan Forgiveness…
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