Trump drops legal fight over student loan forgiveness overhaul

Summarised from 2 outlets · Updated 22 Oct, 00:32 · Archive

The Trump administration has abandoned its legal challenge to reverse a federal court ruling that blocked its attempt to reshape the Public Service Loan Forgiveness program.

The Trump administration moved Wednesday to end its legal fight to overhaul the Public Service Loan Forgiveness programme after federal judges ruled against it. The Department of Justice dropped two appeals in single-sentence joint agreements, with each side paying its own legal fees. Federal officials provided no explanation for the withdrawal.

The PSLF programme was designed to make public service careers more attractive by forgiving loans for qualified employees in government, public schools, fire and police departments, public hospitals and nonprofits after a decade of payments. The programme has cancelled loans for more than 1 million Americans.

Last fall, the Trump administration wrote a new rule empowering Education Secretary Linda McMahon to remove employers from the programme if she decides their work has a 'substantial illegal purpose'. The rule was targeted at employers supporting undocumented immigrants or transgender youth, potentially affecting borrowers in schools, public hospitals and legal aid groups. In June, U.S. District Judge Myong Joun in Massachusetts vacated the changes, ruling they overstepped the agency's power and threatened First Amendment protections.

Advocates praised the withdrawal. Dan Zibel, an attorney for Student Defense, said: 'The Trump administration's attempt to weaponize public service loan forgiveness against organisations it disagrees with was anti-democratic and unlawful from the start.'

How it is being reported

• Trump administration drops legal fight to overhaul student loan forgiveness programThe Trump administration is moving to end its legal fight to overhaul a popular student loan forgiveness program.Clickorlando · 22 Oct, 00:09
• Trump administration drops legal fight to overhaul student loan forgiveness programThe Trump administration is moving to end its legal fight to overhaul a popular student loan forgiveness program.News4Jax · 22 Oct, 00:09

In this story: Trump administration · Public Service Loan Forgiveness programme · Linda McMahon · Department of Justice · Judge Myong Joun · Massachusetts

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