A federal judge in Boston has blocked the Trump administration from implementing a new rule that would strip public service workers of eligibility for federal student loan forgiveness if their employers are deemed to have a “substantial illegal purpose”.

Background

The Public Service Loan Forgiveness Program allows borrowers to have their federal student loans forgiven after 10 years of working for government or nonprofit employers. The Trump administration’s new rule, which was set to take effect on July 1, would have redefined what constitutes “public service” work to exclude organizations that engage in activities such as aiding illegal immigration or supporting terrorism.

The plaintiffs, including Democratic-led states, cities, and nonprofits, argued that the rule was designed to target groups that support immigration rights, transgender healthcare, and other causes that the Trump administration disfavors. They claimed that the law that created the forgiveness program did not grant the Education Department the discretion to create exceptions to eligibility and that the agency lacked a rational basis for adopting the policy.

Ruling

The judge’s ruling marks the second legal defeat for the Trump administration’s efforts to remake the federal student loan system in the last week. On Wednesday, another judge in Washington, D.C., barred the Education Department from implementing a new rule that would impose lower federal student loan limits for people pursuing graduate degrees in nursing and other healthcare-related fields.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.