21 State Attorneys General Sue Over Student Debt Relief Rule Changes

By Theodore Bunker | Monday, 03 November 2025 02:48 PM EST

The attorneys general of 21 Democratic-led states filed a lawsuit against the Department of Education on Monday, challenging new rules for the Public Service Loan Forgiveness (PSLF) program. The Trump administration’s final rule, released last week, excludes individuals involved in “unlawful activities,” including “abetting illegal immigration” and medical treatment for transgender minors, from qualifying for debt relief under the program.

The states argue the policy unfairly targets public servants supporting policies opposed by former President Donald Trump, such as educators in inclusive curricula, healthcare providers offering gender-transitioning care, or legal aid attorneys assisting immigrants. New York Attorney General Letitia James condemned the change, calling it a “political loyalty test” that undermines the PSLF’s purpose of rewarding public service.

Under Secretary of Education Nicholas Kent defended the rule, stating it prevents taxpayer funds from subsidizing “organizations involved in terrorism, child trafficking, and irreversible harm to children.” He emphasized the policy would be enforced neutrally, regardless of an employer’s mission or ideology.

Theodore Bunker is a Newsmax writer with over a decade of experience covering news, media, and politics.