States sue Trump administration over PSLF rule | JQJO

New York Attorney General Letitia James and more than a dozen counterparts filed a Boston federal lawsuit challenging the Trump administration’s new rule narrowing who qualifies for Public Service Loan Forgiveness, which forgives debt after a decade for nonprofit and government workers. The Education Department says the rule bars organizations engaged in unlawful activities, including supporting terrorism or aiding illegal immigration. James called it a political loyalty test; Under Secretary Nicholas Kent called it commonsense reform. Cities, unions, and nonprofits also sued, warning it could make higher education more expensive for public workers.