NATIONAL NEWS

Judge strikes down Trump administration overhaul of student loan forgiveness program

Jun 30, 2026, 3:01 PM

FILE - The U.S. Department of Education building is seen in Washington, Nov. 18, 2024. (AP Photo/Jo...

FILE - The U.S. Department of Education building is seen in Washington, Nov. 18, 2024. (AP Photo/Jose Luis Magana, File)
Credit: AP Photo/Jose Luis Magana

(AP Photo/Jose Luis Magana, File)

WASHINGTON (AP) — A federal judge on Tuesday struck down a Trump administration overhaul to a public service forgiveness program for student loans, ruling in favor of advocates who said the program risked becoming a tool for political retribution.

U.S. District Judge Myong Joun in Massachusetts vacated the U.S. Education Department’s changes, saying they overstepped the agency’s power and threatened to violate First Amendment protections for free speech. His ruling came a day before the new rules were set to take effect.

The ruling came in response to a pair of lawsuits filed by more than 20 states along with a coalition of nonprofit groups and cities. The Education Department did not immediately respond to a request for comment.

Congress created Public Service Loan Forgiveness in 2007 to encourage college graduates to work in government and nonprofit jobs. It promised to forgive their federal student loans after they worked in public service jobs for 10 years.

Last year the Trump administration moved to add new eligibility rules that would strip the benefit from workers whose employers are deemed to have a “substantial illegal purpose.”

The overhaul targeted nonprofits and government organizations that support causes at odds with the Trump administration’s priorities.

It gave the education secretary power to exclude groups from the program if they engage in the trafficking or “chemical castration” of children, illegal immigration or supporting terrorist organizations. Its definition of “chemical castration” included using hormone therapy or drugs that delay puberty.

Joun said the new rules threatened to impose the administration’s policy views on employers. The judge also faulted the department for failing to connect its definitions of illegal activity to criminal statutes.

“The Department cannot create new criminal prohibitions through rulemaking,” he wrote.

The judge also questioned the department’s stated rationale for proposing the new rules, drawing on its own estimates that fewer than 10 employers would be barred from the program per year.

“The Department offers no explanation for why a Final Rule with such sweeping consequences is necessary to address the possibility that, at most, ten employers each year may be engaging in illegal activity,” Joun wrote.

The overhaul amounted to a major reworking of a program that has canceled loans for more than 1 million Americans. Nonprofits and government groups said it undercut an important benefit that helped attract college graduates to jobs that traditionally pay lower than the private sector.

In his ruling, Joun noted that more than 100 supporting briefs were filed on behalf of the groups challenging the rules, while none were filed supporting the Trump administration’s change.

___

The Associated Press’ education coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP’s standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org.

Please follow our Community Guidelines

National News

This image released by Heritage Auctions shows a lightsaber used by the character Darth Vader in th...

Associated Press

Darth Vader’s light saber used in ‘I am your father’ duel sells for nearly $5 million

A light saber used by Darth Vader in the “Star Wars” movies “The Empire Strikes Back” and ”Return of the Jedi” sold Thursday for nearly $5 million in an auction. The light saber, which was used in the climactic duel in Cloud City where Vader tells Luke Skywalker “I am your father,” sold for $4.875 […]

11 minutes ago

Associated Press

Democrat Cindy Holscher wins election for governor in Kansas

Democrat Cindy Holscher won election Thursday as governor of Kansas, defeating Republican Ty Masterson. Holscher’s win will keep the governor’s office under Democratic control after the departure of term-limited Gov. Laura Kelly. The victory also breaks a 60-year streak in Kansas of electing governors from the party opposite that of their immediate predecessors. Holscher, a […]

26 minutes ago

New York City Department of Buildings employees stand on a rooftop during their investigation of a ...

Associated Press

Witnesses who watched a Brooklyn building come crashing down felt helpless amid the chaos

NEW YORK (AP) — The loud popping sounds outside alarmed Dervie Mapp enough to make her bolt out of bed. She ran to the kitchen window of her Brooklyn apartment and looked out across the construction site next door. The 67-year-old retiree watched helplessly as a three-story building on the other side of the worksite […]

2 hours ago

Associated Press

Cargo ship strikes bridge between New Jersey and Pennsylvania, lawmaker says, causing major backups

PALMYRA, N.J. (AP) — A largo cargo ship struck a bridge across the Delaware River on Thursday, disrupting traffic between Palmyra, New Jersey, and Philadelphia, according to a Pennsylvania lawmaker. The collision left the 3,659-foot-long (1,115-meter-long) Tacony-Palmyra Bridge unable to close, causing a major backup on the Philadelphia side, state Rep. Ed Neilson said in […]

2 hours ago

U.S. Men's National Soccer Team head coach Mauricio Pochettino walks on the pitch during practice, ...

Associated Press

The coach who energized U.S. soccer at the World Cup is on the verge of leaving for a job in England

Mauricio Pochettino had the United States on a roll at the World Cup. The Americans plowed into the knockout stages with fun and furious soccer as rapturous crowds shook the stadiums with “Country Roads” sing-alongs in front of record television audiences. And Pochettino, a former Argentina player who had coached in some of Europe’s biggest […]

3 hours ago

FILE - Former Maine Gov. Paul LePage, a candidate for Maine's second congressional House district, ...

Associated Press

Republicans suffered landslide losses in the midterms. Here’s one place in Maine where they did win

AUGUSTA, Maine (AP) — As Republicans dig out from under a midterm landslide, they can point to a single bright spot on the nationwide congressional map. That’s Maine’s 2nd congressional district, the only seat that went from blue to red without the help of redistricting. It was far from a resounding victory. Even though President […]

3 hours ago

Judge strikes down Trump administration overhaul of student loan forgiveness program