New Jersey Attorney General Matthew J. Platkin, along with attorneys general from 21 other states, has filed a lawsuit against the U.S. Department of Education. The suit challenges a new federal rule that would limit which government and nonprofit employees are eligible for the Public Service Loan Forgiveness (PSLF) program.
The PSLF program, created in 2007 by Congress, is designed to help individuals who work in public service jobs by forgiving their remaining federal student loan debt after 10 years of qualifying service and payments. According to the coalition of attorneys general, more than one million public servants have benefited from this program since its inception.
The new rule, finalized by the Department of Education on October 31, gives the agency authority to declare certain state and local governments or nonprofits ineligible for PSLF if they are found to have engaged in what it calls “substantial illegal” activities. Critics argue that this standard is vague and could be used to target organizations based on political disagreements with the current administration.
Attorney General Platkin stated, “Since taking office, President Trump has denigrated hardworking public servants who make tremendous sacrifices every day for their communities. At a time when the cost of higher education continues to skyrocket, limiting access to public service loan forgiveness is a shortsighted, reckless, and illegal attack on public-minded employees who keep us safe and provide our residents with critical services,” said Attorney General Platkin. “Serving our country in law enforcement, education, healthcare, and government is deeply honorable, and we should be doing everything in our power to encourage Americans to give back to their communities through public service. The Public Service Loan Forgiveness program makes these honorable pursuits possible for many Americans—but now the Trump Administration is targeting this critical program. We are proud to stand up for our public servants against this illegal and vindictive attack.”
The lawsuit claims that allowing the Department of Education broad discretion under a “substantial illegal purpose” standard could harm workers nationwide by removing their eligibility without clear cause. The coalition argues that such changes could result in staffing shortages and increased costs for essential state services.
According to the complaint filed by Platkin and his counterparts from New York, Massachusetts, California, Colorado, Arizona, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Michigan, Minnesota, Nevada, New Mexico, Oregon, Rhode Island, Vermont, Washington State, Wisconsin as well as the District of Columbia—this new rule violates statutory protections guaranteed under federal law for those employed full-time in qualifying public service positions.
The attorneys general are seeking a court order declaring the rule unlawful and preventing its enforcement or implementation. Additionally today a group of private plaintiffs and local governments also filed legal action seeking to block implementation of the same regulation.
