Judges Block Trump’s Student Loan Forgiveness Overhaul | Phoenix News

Two federal judges have blocked a Trump-era plan to overhaul public service student loan forgiveness, halting changes that could have disqualified workers from loan cancellation if their employers were deemed to have a “substantial illegal purpose”—a move seen as targeting nonprofits and government groups with missions at odds with the administration’s priorities. The judges ruled the changes overstepped agency authority and risked violating free speech, noting the Department of Education was essentially creating new criminal prohibitions. The decision, coming just before the rules were set to take effect, was prompted by lawsuits from 20+ states and advocacy groups who warned the overhaul would undermine a vital incentive for public service. The Department of Education maintains the policy is necessary to prevent taxpayer funds from supporting illegal activities, but now faces legal and political fallout as millions of borrowers’ futures hang in the balance. Listen in comfort:Get a discount on a Soli Pillow: http://solipillow.com/discount/dnn Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/2b1c90b1ef05d550