Two federal judges struck down Trump administration restrictions on Public Service Loan Forgiveness, ruling in separate cases that the changes exceeded agency authority and risked violating First Amendment protections. The decisions came just before new rules were scheduled to take effect. The rulings vacate key parts of the administration’s overhaul of PSLF eligibility, including new standards that would have broadened the grounds to exclude borrowers based on alleged “substantial illegal purpose” by employers, with expanded discretion for the education secretary. Advocates argued the revisions could reduce access to a major repayment benefit for public and nonprofit-sector workers who often accept lower wages than the private sector, while the U.S. Department of Education said it was evaluating next steps.
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