A federal judge has permanently blocked a federal rule that would have allowed the U.S. Department of Education to deny student loan forgiveness to public servants based on their employers’ political and policy stances.

Background

The U.S. District Court for the District of Massachusetts granted a motion for summary judgment, declaring the proposed policy illegal and preventing it from taking effect. The legal battle began in November 2025, when Michigan Attorney General Dana Nessel joined a coalition of 22 other attorneys general to challenge the Department of Education’s new rule.

The regulation would have granted the federal administration the authority to disqualify state governments, public schools, hospitals, and nonprofit organizations from the Public Service Loan Forgiveness (PSLF) program. Under the rule, organizations could have been deemed ineligible if they supported immigrants, diversity programs, or pediatric gender treatments.

Reaction

Following the court’s ruling, Attorney General Nessel issued a statement defending the program and criticizing the federal administration’s overreach. ‘Public servants who give back to our communities deserve our support, not unlawful political retribution,’ Nessel said.

Nessel stated that the work performed by these individuals is essential to everyday society. ‘Their service is critical to state services, emergency response, educational opportunity, public access to healthcare, and so much more everywhere in our country,’ Nessel said.

Original reporting: Tampa Free Press — read the source article.