{"id":3379,"date":"2026-06-30T21:11:16","date_gmt":"2026-06-30T21:11:16","guid":{"rendered":"https:\/\/reliablemovingcrews.com\/?p=3379"},"modified":"2026-06-30T21:11:16","modified_gmt":"2026-06-30T21:11:16","slug":"us-judge-blocks-trumps-limits-on-student-loan-forgiveness","status":"publish","type":"post","link":"https:\/\/reliablemovingcrews.com\/?p=3379","title":{"rendered":"US judge blocks Trump’s limits on student loan forgiveness"},"content":{"rendered":"
BOSTON, June 30 (Reuters) – A federal judge on Tuesday blocked U.S. President Donald Trump’s administration from implementing a new rule stripping public service workers of eligibility for federal student loan forgiveness \u200bif it deems their employers to have a “substantial illegal purpose.”<\/div>
U.S. District Judge Myong \u200cJoun in Boston Democratic-led states, cities and nonprofits that argued the U.S. Department of Education’s rule would allow it to target groups supporting immigration rights, transgender healthcare and other causes the Trump administration \u200bdisfavors by disqualifying them from the Public Service Loan Forgiveness Program.<\/div>
That program allows borrowers \u200bto have their federal student loans forgiven after 10 years working for \u2060government or nonprofit employers. More than 1 million borrowers have received debt relief since \u200bCongress established it in 2007.<\/div>
Trump in a March 2025 executive order claimed the program has “misdirected tax \u200bdollars into activist organizations that not only fail to serve the public interest, but actually harm our national security and American values.”<\/div>
His order directed the Education Department to revise regulations governing the program to redefine \u200bwhat constitutes “public service” work to exclude organizations that engage in activities that have a “substantial \u200billegal purpose.”<\/div>
The Education Department did so with a final rule that it published in October that defined “substantial illegal \u200cpurpose” \u2060as covering activities that include aiding illegal immigration; supporting terrorism; engaging in illegal discrimination; and participating in the “chemical and surgical castration or mutilation of children.”<\/div>
The plaintiffs sued in November in order to have the rule blocked from taking effect on July 1, saying it was clearly designed \u200bto target causes the \u200badministration disfavors and \u2060groups that support immigrants’ rights, transgender healthcare, diversity initiatives and political protest.<\/div>
Their lawsuit argued that the law that created the forgiveness program did \u200bnot grant the Education Department the discretion to create exceptions to \u200beligibility for \u2060the program and that the agency lacked a rational basis for adopting the policy.<\/div>
Tuesday’s ruling marked the second legal defeat for the Trump administration’s efforts to remake the federal student loan system in \u2060the \u200blast week.<\/div>
On Wednesday, another judge in Washington, D.C., barred the \u200bEducation Department from implementing a new rule that would impose lower federal student loan limits for people pursuing graduate \u200bdegrees in nursing and other healthcare-related fields.<\/div>