Judge Strikes Down Trump Administration Overhaul of Student Loan Forgiveness Program [View all]

Source: US News & World Report/AP

June 30, 2026, at 6:01 p.m.


WASHINGTON (AP) — A federal judge on Tuesday struck down a Trump administration overhaul to a public service forgiveness program for student loans, ruling in favor of advocates who said the program risked becoming a tool for political retribution.

U.S. District Judge Myong Joun in Massachusetts vacated the U.S. Education Department's changes, saying they overstepped the agency's power and threatened to violate First Amendment protections for free speech. His ruling came a day before the new rules were set to take effect.

The ruling came in response to a pair of lawsuits filed by more than 20 states along with a coalition of nonprofit groups and cities. The Education Department did not immediately respond to a request for comment. Congress created Public Service Loan Forgiveness in 2007 to encourage college graduates to work in government and nonprofit jobs. It promised to forgive their federal student loans after they worked in public service jobs for 10 years.

Last year the Trump administration moved to add new eligibility rules that would strip the benefit from workers whose employers are deemed to have a "substantial illegal purpose." The overhaul targeted nonprofits and government organizations that support causes at odds with the Trump administration's priorities.

Read more: https://www.usnews.com/news/us/articles/2026-06-30/judge-strikes-down-trump-administration-overhaul-of-student-loan-forgiveness-program