""The administration's new rule "would effectively transform PSLF into a political weapon against states and causes the administration does not like by allowing the federal government to deem them to be 'substantially illegal' whenever it chooses," James said in a press release. "The law that created PSLF guarantees forgiveness for anyone who works full-time in qualifying public service; it does not grant [the Education Department] discretion to carve out exceptions based on ideology.""
""It is unconscionable that the plaintiffs are standing up for criminal activity," Under Secretary of Education Nicholas Kent told Axios. "This is a commonsense reform that will stop taxpayer dollars from subsidizing organizations involved in terrorism, child trafficking, and transgender procedures that are doing irreversible harm to children.""
A new Education Department rule would allow denial of Public Service Loan Forgiveness to borrowers employed by organizations the department deems 'substantially illegal,' with an effective date of July 1, 2026. A coalition of states and cities filed lawsuits challenging the rule as flatly illegal. Critics say the rule enables ideological exceptions to PSLF; supporters say it prevents taxpayer dollars from subsidizing organizations tied to terrorism, child trafficking, and certain transgender procedures. PSLF, created in 2007, forgives remaining federal student loan balances after ten years of qualifying public service. As of December 2024, nearly $180 billion had been canceled for 4.9 million borrowers. The rule is part of broader federal changes narrowing repayment options and pausing certain income-driven repayment programs.
Read at Axios
Unable to calculate read time
Collection
[
|
...
]