BUZZ
Key Takeaways
- A federal judge blocked the Trump administration's restrictions on the Public Service Loan Forgiveness program, citing violations of free speech rights for borrowers engaging in lawful activities such as supporting immigrants and teaching inclusion.
- Judge Joun criticized the lack of justification for the rule, which could potentially disqualify borrowers based on vague accusations of illegal activity, asserting that the administration cannot create new criminal prohibitions through rulemaking.
- The PSLF program, which provides loan forgiveness for government and non-profit workers after ten years of service, has helped over one million borrowers since its inception, while the recent ruling aligns with a broader legal challenge from multiple states and organizations against the administration's policies.
A federal district court judge blocked the Trump administration’s new restrictions on the Public Service Loan Forgiveness program on Tuesday, just one day before the rule was set to take effect.
The decision states that the Education Department’s rule restricts free expression “by threatening to revoke PSLF eligibility from borrowers who, among other things, lawfully assist immigrants; teach diversity, equity, and inclusion practices; and facilitate gender-affirming care.”
The rule “chills protected speech and attempts to force PSLF beneficiaries to adopt the administration’s policy views,” U.S. District Judge Myong Joun in Massachusetts wrote.
Further, “The Department offers no explanation for why a Final Rule with such sweeping consequences is necessary to address the possibility that, at most, ten employers each year may be engaging in illegal activity,” Joun wrote.
He added that the Trump administration “cannot create new criminal prohibitions through rulemaking.”
In response, Under Secretary of Education Nicholas Kent defended the rule.
“The Department stands behind this commonsense policy to ensure that taxpayer dollars are never used to subsidize illegal activities,” Kent said, according to the Associated Press.
The PSLF program offers loan forgiveness to borrowers who have been working for government or non-profit organizations for at least ten years, according to The Guardian.
“More than a million borrowers have received debt relief since Congress established it in 2007,” the outlet reported.
In a March 2025 executive order, President Trump banned access to the PSLF program for employees of public organizations that conduct “illegal activities,” Inside Higher Ed reported.
The Education Department clarified in its final rule that illegal activities include those listed in the decision, as well as “supporting terrorism,” “engaging in the trafficking of children,” and “engaging in a pattern of aiding and abetting illegal discrimination.”
In November, a coalition of 22 states plus D.C., five local governments, five nonprofits, and five employee groups filed a legal challenge against the department’s new rule. They argued that threatening to disqualify workers from the program could discourage people from pursuing careers in public service, Inside Higher Ed reported.
Another federal judge recently issued a limited block on the Trump administration’s new graduate student loan caps, The College Fix recently reported.
Effective July 1, graduate students can borrow $20,500 per year unless they are in a “professional” degree program, in which case they can borrow up to $50,000 per year. The Education Department classified certain programs as “professional,” such as medicine or dentistry.
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