Attorney General Rayfield Blocks Weaponization of Public Service Loan Forgiveness Program

Attorney General Rayfield released the following statement after a judge permanently blocked the Trump administration from denying loan forgiveness to teachers, nurses, and other public servants whose employers are not aligned with the administration's ideology:

"The court confirmed what we've said all along - Trump can't punish public servants because their employers happen to disagree with his policies. Regardless of who is in the White House, the federal government needs to make good on its promise to forgive loans for teachers, nurses, firefighters, and other Oregonians who've given years of dedicated service to our communities."

In November 2025, Attorney General Rayfield and a coalition of 22 other attorneys general challenged a new rule from the U.S. Department of Education that unlawfully restricted eligibility for the Public Service Loan Forgiveness (PSLF) program, which allows government and nonprofit employees to have their federal student loans forgiven after ten years of qualifying public service. The rule, set to take effect today, 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 health care, or diversity programs.

Tuesday, the U.S. District Court for the District of Massachusetts granted the coalition's motion for summary judgment, declaring the rule illegal and permanently blocking it from taking effect.