By: Richard L. Smith
Thousands of New Jersey teachers, police officers, firefighters, nurses, government employees, and nonprofit workers who participate in the federal Public Service Loan Forgiveness (PSLF) program could see temporary relief after two federal judges blocked a Trump administration rule that would have narrowed eligibility for the program.
According to Reuters, the rulings were issued Tuesday by federal judges in Massachusetts and Washington, D.C., who determined the U.S. Department of Education likely exceeded its legal authority by attempting to limit which nonprofit organizations and public employers qualify for the long-standing student loan forgiveness program.
The proposed rule would have allowed the federal government to deny loan forgiveness to borrowers employed by organizations determined to have a “substantial illegal purpose.”
The judges found that Congress—not the executive branch—sets the eligibility requirements for the program and expressed concerns that the policy could infringe on First Amendment protections.
The Public Service Loan Forgiveness program, established by Congress in 2007, allows eligible public service employees to have the remaining balance of their federal student loans forgiven after making 120 qualifying monthly payments.
In New Jersey, the program has benefited thousands of educators, first responders, healthcare workers, and other public servants who rely on the program as part of their long-term financial planning.
The rulings do not permanently decide the case but temporarily prevent the administration’s changes from taking effect while the lawsuits continue through the federal court system.
The U.S. Department of Education has indicated it is reviewing the decisions and considering its next legal steps.
This story is based primarily on reporting by Reuters.