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Business Insider·4 min read·medium

A judge blocks Trump's plan to limit a major student-loan forgiveness program for public servants

A judge blocks Trump's plan to limit a major student-loan forgiveness program for public servants
AI Summary

A federal judge has blocked the Trump administration's attempt to narrow eligibility for the Public Service Loan Forgiveness (PSLF) program. The court ruled that the Education Department exceeded its authority by attempting to impose political preferences on the program that were not authorized by Congress.

Why it matters

This ruling prevents the administration from using federal student loan programs as a tool to enforce specific social or political agendas, protecting current eligibility standards for public servants.

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A judge blocked President Donald Trump's rule to limit the Public Service Loan Forgiveness program. Tierney L. Cross/Getty Images A federal judge blocked Trump's plans to limit the Public Service Loan Forgiveness program. The ruling comes just hours before it was set to take effect. With the rule blocked, all public service employers will maintain access to the program. A federal judge blocked the Trump administration's plan to narrow eligibility for a major student-loan forgiveness program , ruling that the Education Department could not use the program to impose political preferences that Congress never wrote into law. On Tuesday, US District Judge Myong Joun blocked the Education Department's final rule limiting eligibility for the Public Service Loan Forgiveness program, which forgives student debt for government and nonprofit workers after 10 years of qualifying payments. The rule had been set to take effect on July 1. It followed an executive order Trump signed last year directing the education secretary to "redefine" what counts as public service and exclude employers from PSLF if their work did not align with the administration's view of public service work, such as providing gender-affirming care. Joun wrote in the ruling that the department's rule was "unlawful" and that the administration could not use PSLF to pressure borrowers or employers to conform to policy goals that had not been enacted by Congress. "It may not leverage the PSLF program to compel Plaintiffs to conform their conduct to policy preferences that have not been enacted into law," Joun wrote. "Administrations change with elections; criminal laws do not." The Education Department did not immediately respond to Business Insider's request for comment on the ruling. Winston Berkman-Breen, legal director at advocacy group Protect Borrowers — which filed the lawsuit alongside Democracy Forward — said in a statement that "this was a simple but powerful case with serious implications for working people across the country." "With today's decision, teachers, social workers, immigration attorneys, and government employees can continue their important work without fear that the federal government will punish them for their service," Berkman-Breen said. Have a story to share about student loans? Contact this reporter at asheffey@businessinsider.com , or fill out this form . Read the original article on Business Insider

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politicseducationeconomy
Political Bias
Center
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Confidence: 80%

The article reports on a judicial ruling, citing the judge's reasoning and the legal arguments from both sides.

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