ATTORNEY GENERAL RAOUL STOPS TRUMP ADMINISTRATION’S ILLEGAL WEAPONIZATION OF PUBLIC SERVICE LOAN FORGIVENESS PROGRAM

ATTORNEY GENERAL RAOUL STOPS TRUMP ADMINISTRATION'S ILLEGAL WEAPONIZATION OF PUBLIC SERVICE LOAN FORGIVENESS PROGRAM

October 22, 2026

Chicago - Attorney General Kwame Raoul won a successful resolution of his lawsuit challenging unlawful eligibility restrictions for the Public Service Loan Forgiveness (PSLF) program, which allows government and nonprofit employees to have their federal student loans forgiven after 10 years of service.

The Trump administration today dropped its appeal of a federal court ruling declaring illegal and permanently blocking a rule that would have allowed the administration to strip PSLF eligibility from employees of government and nonprofit organizations.

Raoul and a coalition of attorneys general sued the Trump administration in November 2025 over the rule and secured a decision from the U.S. District Court for the District of Massachusetts vacating it in June 2026.

"The president's attempt to punish states he disagrees with politically was illegal, and I am pleased with our win in this case," Raoul said. "I will continue to stand with my fellow attorneys general to protect nurses, teachers, first responders and all Americans who choose to devote their lives to public service."

The PSLF program was established by Congress in 2007 to encourage students to dedicate their careers to the service of others. The program forgives borrowers' remaining federal student loan debt after 10 years of qualifying public service and consistent payments. Over the years, PSLF has enabled more than 1 million public servants to pursue careers that might have otherwise been out of reach. For state governments, PSLF is a critical tool to recruit and retain qualified professionals in vital fields like education, healthcare and law enforcement.

The U.S. Department of Education rule at issue in the case would have given the administration the power to deem state governments, hospitals, schools and nonprofit organizations ineligible for PSLF based on their support for immigrants, gender-affirming healthcare or diversity programs. In the June 2026 order, the court held that the department's regulations were contrary to law, arbitrary and capricious, exceeded the agency's statutory authority and violated the First Amendment of the U.S. Constitution.

Joining Raoul in filing the lawsuit are the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, the District of Columbia, Hawaii, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont, Washington and Wisconsin.