{"id":2036,"date":"2026-01-08T11:25:29","date_gmt":"2026-01-08T16:25:29","guid":{"rendered":"https:\/\/digitaljournalism.uconn.edu\/balance-of-power\/?p=2036"},"modified":"2026-01-11T13:57:27","modified_gmt":"2026-01-11T18:57:27","slug":"public-service-loan-forgiveness-restrictions","status":"publish","type":"post","link":"https:\/\/digitaljournalism.uconn.edu\/balance-of-power\/2026\/01\/08\/public-service-loan-forgiveness-restrictions\/","title":{"rendered":"Public Service Loan Forgiveness Restrictions"},"content":{"rendered":"\n
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Press Release:<\/strong><\/h3>\n\n\n\n

AG Tong Sues Depart\u00adment of Edu\u00adca\u00adtion to Block Pub\u00adlic Ser\u00advice Loan For\u00adgive\u00adness Restric\u00adtions<\/a><\/p>\n\n\n\n

Preceding Event:<\/strong><\/h3>\n\n\n\n

The Pub\u00adlic Ser\u00advice Loan For\u00adgive\u00adness (PSLF) pro\u00adgram was estab\u00adlished in 2007 by Con\u00adgress as an incen\u00adtive for peo\u00adple who ded\u00adi\u00adcat\u00aded their careers to pub\u00adlic ser\u00advice. After mak\u00ading con\u00adsis\u00adtent pay\u00adments on stu\u00addent loans and ten years pub\u00adlic ser\u00advice, the pro\u00adgram for\u00adgives the bor\u00adrow\u00ader\u2019s remain\u00ading fed\u00ader\u00adal loan bal\u00adance.<\/p>\n\n\n\n

Accord\u00ading to the press release from Nov. 3, 2025, \u201cOn Octo\u00adber 31, the Edu\u00adca\u00adtion Depart\u00adment (ED) final\u00adized a new rule grant\u00adi\u00adng itself the pow\u00ader to uni\u00adlat\u00ader\u00adal\u00adly declare entire agen\u00adcies or orga\u00adni\u00adza\u00adtions inel\u00adi\u00adgi\u00adble employ\u00aders for PSLF if the admin\u00adis\u00adtra\u00adtion deter\u00admines they have a \u2018sub\u00adstan\u00adtial ille\u00adgal pur\u00adpose.\u2019 The rule includes only a very lim\u00adit\u00aded def\u00adi\u00adn\u00adi\u00adtion of such \u2018ille\u00adgal\u00adi\u00adty,\u2019 which includes activ\u00adi\u00adties that sup\u00adport undoc\u00adu\u00adment\u00aded immi\u00adgrants, pro\u00advide gen\u00adder-affirm\u00ading health care to trans\u00adgen\u00adder youth, pro\u00admote diver\u00adsi\u00adty, equi\u00adty, and inclu\u00adsion efforts, and engage in polit\u00adi\u00adcal protest. The rule is sched\u00aduled to take effect in July 2026.\u201d<\/p>\n\n\n\n

General Overview:<\/strong><\/h3>\n\n\n\n

Accord\u00ading to the press release, \u201cAttor\u00adney Gen\u00ader\u00adal William Tong and 21 oth\u00ader attor\u00adneys gen\u00ader\u00adal today filed a law\u00adsuit against the U.S. Depart\u00adment of Edu\u00adca\u00adtion (ED) for unlaw\u00adful\u00adly restrict\u00ading eli\u00adgi\u00adbil\u00adi\u00adty for the Pub\u00adlic Ser\u00advice Loan For\u00adgive\u00adness (PSLF) pro\u00adgram, which allows gov\u00adern\u00adment and non\u00adprof\u00adit employ\u00adees to have their fed\u00ader\u00adal stu\u00addent loans for\u00adgiv\u00aden after ten years of ser\u00advice. The attor\u00adneys gen\u00ader\u00adal are chal\u00adleng\u00ading a new fed\u00ader\u00adal rule that would deem cer\u00adtain state and local gov\u00adern\u00adments or non\u00adprof\u00adit orga\u00adni\u00adza\u00adtions inel\u00adi\u00adgi\u00adble employ\u00aders for PSLF if the fed\u00ader\u00adal gov\u00adern\u00adment deter\u00admines they have engaged in actions with a sub\u00adstan\u00adtial ille\u00adgal pur\u00adpose \u2013 in prac\u00adtice, activ\u00adi\u00adties, or actions that are dis\u00adfa\u00advored by the admin\u00adis\u00adtra\u00adtion. The coali\u00adtion argues that the sweep\u00ading new rule is unlaw\u00adful and tar\u00adget\u00aded to pun\u00adish states and orga\u00adni\u00adza\u00adtions that the admin\u00adis\u00adtra\u00adtion does not like.\u201d<\/p>\n\n\n\n

The coali\u00adtion claims that the new rule is \u201cflat\u00adly ille\u00adgal\u201d because the statute cre\u00adat\u00ading the pro\u00adgram guar\u00adan\u00adtees loan for\u00adgive\u00adness to any\u00adone who is qual\u00adi\u00adfied for it and that the statute \u201cdoes not grant ED dis\u00adcre\u00adtion to carve out excep\u00adtions based on ide\u00adol\u00ado\u00adgy.\u201d The coali\u00adtion argues that not only is the def\u00adi\u00adn\u00adi\u00adtion of \u201csub\u00adstan\u00adtial ille\u00adgal pur\u00adpose\u201d unclear, but that the lack of clar\u00adi\u00adty gives ED the pow\u00ader to \u201ctar\u00adget spe\u00adcif\u00adic state poli\u00adcies or social pro\u00adgrams while exempt\u00ading fed\u00ader\u00adal agen\u00adcies from scruti\u00adny.\u201d<\/p>\n\n\n\n

The suit is ask\u00ading the court to declare the rule unlaw\u00adful and pre\u00advent and pro\u00adhib\u00adit ED from imple\u00adment\u00ading it.<\/p>\n\n\n\n

Date of filing:<\/strong><\/h3>\n\n\n\n

Nov. 3, 2025<\/p>\n\n\n\n

Case #:<\/strong><\/h3>\n\n\n\n

1:25-cv-13244<\/a><\/p>\n\n\n\n

Case title:<\/strong><\/h3>\n\n\n\n

Com\u00admon\u00adwealth of Mass\u00ada\u00adchu\u00adsetts et al v. U.S. Depart\u00adment of Edu\u00adca\u00adtion et al<\/em><\/p>\n\n\n\n

Plaintiffs:<\/strong> 21 states and D.C.<\/h3>\n\n\n\n