Two separate federal court rulings stopped major parts of the Trump administration’s overhaul of Public Service Loan Forgiveness, just as new eligibility limits were set to begin. In Massachusetts, U.S. District Judge Myong Joun vacated changes to the U.S. Department of Education’s rules, finding the agency exceeded its authority and threatened First Amendment protections. In Washington, D.C., U.S. District Judge Amir Ali issued a similar block in litigation brought by nonprofits. The administration had sought to narrow PSLF by conditioning eligibility on whether borrowers’ employers had a “substantial illegal purpose,” using broad criteria tied to speech and program participation. The rulings preserve a benefit created by Congress in 2007 that cancels federal student debt after 10 years of public service and qualifying payments. Advocates argue the policy would chill participation in public-interest jobs—especially where compensation and eligibility rules already shape students’ career choices. Education officials said the department is evaluating next steps, while plaintiffs—including civil society groups—frame the decisions as restoring stability for borrowers in public and nonprofit work.
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