States and Education Department sue over changes to student loan forgiveness rules

Cities and unions are suing the Trump administration over a new rule that could deny loan forgiveness to public workers based on their employer's activities, with concerns it may be used to target organizations or jurisdictions with policies opposing the administration's views. The rule defines 'substantial illegal purpose' broadly, potentially affecting workers in organizations involved in lawful activities related to immigration, LGBTQ+ rights, or racial justice, and raises questions about the scope of the Department of Education's authority. Critics argue the rule contradicts Congress's original intent for PSLF and could lead to staffing crises in public service sectors.