2 lawsuits filed in Mass. challenge new rule limiting student loan forgiveness for public servants

"Two lawsuits challenging the Trump administration's changes to a student loan forgiveness program for public servants were filed Monday, seeking to preserve the program's current scope and purpose. The administration announced a rule last week that would curtail the Public Service Loan Forgiveness program and restrict the types of workers and fields eligible for the benefit. The program has historically allowed government and nonprofit workers to apply to have their remaining federal student loans canceled after 10 years of service and monthly loan payments."

"A coalition of nonprofits and city and county governments, including a variety of teachers unions and legal aid and immigration rights groups, filed suit in Massachusetts seeking to block the rule. A second lawsuit, also filed in Massachusetts federal court, was brought by 21 state attorneys general and the District of Columbia."

"The Trump administration said the rule finalized last week would exclude employers that "engage in unlawful activities such that they have a substantial illegal purpose, including supporting terrorism and aiding and abetting illegal immigration." Critics warned that the rule could give the administration the power to exclude nonprofits and government agencies that back policies at odds with the administration's agenda. Groups that aid immigrants lacking legal status or support diversity initiatives or gender-affirming care for children could potentially be at risk."

The rule would curtail the Public Service Loan Forgiveness program and narrow the types of workers and fields eligible for loan cancellation. The program previously allowed government and nonprofit employees to have remaining federal student loans canceled after ten years of service and monthly payments. A coalition of nonprofits and municipal governments filed suit in Massachusetts to block the rule, and 21 state attorneys general plus the District of Columbia filed a separate challenge. The administration said the rule excludes employers that engage in unlawful activities, including supporting terrorism or aiding illegal immigration. Critics warn nonprofits assisting undocumented immigrants or offering diversity and gender-affirming services could lose eligibility.

Read at Boston.com