Legal Action Against Education Department Over Loan Forgiveness Rule Changes

November 3, 2025 - 23:03

The attorneys general from twenty-one Democratic states and Washington, D.C., along with two advocacy organizations, filed a lawsuit against the Education Department on Monday. This legal action stems from a recent modification to the Public Service Loan Forgiveness (PSLF) program rules, which the plaintiffs argue undermines the program's original intent and adversely affects borrowers.

The PSLF program was designed to provide relief to public service workers by forgiving their federal student loans after a decade of qualifying payments. However, the recent changes introduced by the Education Department have raised concerns among the states and advocacy groups, who claim that these alterations create unnecessary barriers for eligible borrowers. They assert that the new rules may result in many individuals losing the benefits they rightfully deserve.

The lawsuit seeks to challenge the validity of the rule change and aims to protect the rights of public service employees who have dedicated their careers to serving their communities. As the legal battle unfolds, the implications for student loan borrowers and the future of the PSLF program remain uncertain.