Trump ends legal fight over student loan forgiveness overhaul

Summarised from 3 outlets · Updated 22 Oct, 15:20 · Archive

The Trump administration has withdrawn its legal appeals challenging a federal court ruling against proposed changes to the Public Service Loan Forgiveness program.

The Trump administration moved Wednesday to end its legal fight over the Public Service Loan Forgiveness program by withdrawing two appeals. The Department of Justice had challenged a federal court ruling in June that struck down the administration's proposed overhaul of the scheme. The appeals were dropped through single-sentence joint agreements in which each side agreed to pay its own legal fees. Federal officials offered no explanation for the decision.

The Public Service Loan Forgiveness program was designed to make careers in government, public schools, fire and police departments, public hospitals and nonprofits more attractive by forgiving loans for qualified employees after a decade of payments. The scheme has cancelled loans for more than one million Americans.

Last autumn, the Trump administration wrote a new rule that would have allowed Education Secretary Linda McMahon to remove employers from the program if she deemed their work had a 'substantial illegal purpose'. Advocates said the vaguely worded rule targeted employers who support undocumented immigrants or transgender youth. A federal judge vacated the changes before they took effect in July, saying they overstepped the agency's authority and threatened First Amendment protections. Student Defense attorney Dan Zibel said the administration's attempt to 'weaponise public service loan forgiveness against organisations it disagrees with was anti-democratic and unlawful from the start'.

How it is being reported

• Trump administration abandons legal battle on student loansThe Trump administration has abandoned legal fight over a program after it tried to make student loan forgiveness based on ideology.UPI · 22 Oct, 16:49
• Trump admin abandons legal fight over student loan forgiveness program overhaulTrump’s team drafted a vague new rule for the scheme that was later struck downIndependent World · 22 Oct, 15:01
• Trump admin ending legal fight to overhaul student loan forgiveness programFederal officials provided no explanation, but advocates praised the ruling.New York Post · 22 Oct, 02:07

In this story: Trump administration · Public Service Loan Forgiveness program · Linda McMahon · Student Defense · Dan Zibel · Department of Justice

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem