Arizona is suing to stop Trump from targeting student loan forgiveness for ideological reasons

Arizona Attorney General Kris Mayes, along with a coalition of 21 other Democratic attorneys general, has filed a lawsuit challenging a new rule from the U.S. Department of Education that they allege unfairly targets and cancels public service student loan forgiveness for employees of specific government agencies and organizations. The rule, finalized on October 31 and set to go into effect in July 2026, allows the Department of Education to deem agencies or organizations ineligible for the program if the Trump administration considers them to have a "substantial illegal purpose." The lawsuit argues that the Department of Education's definition of an "illegal purpose" is based on the administration's ideological agenda and aims to deter individuals from pursuing public service careers that align with activities disfavored by the current administration. The Public Service Loan Forgiveness program, established by Congress in 2007, is designed to encourage professionals to enter lower-paying public service jobs by forgiving remaining student loan debt after 10 years of payments. Attorneys general contend that this program is crucial for state governments to recruit and retain qualified professionals in vital sectors like education, healthcare, and law enforcement, and that residents and state employees have made life and career decisions based on its promise. The new rule stems from an executive order issued by Trump in March, which instructed the Department of Education to alter eligibility rules for the program. The rule specifically disqualifies employees of entities that "aid and abet" violations of federal immigration law, support protests against the Trump administration, or... download the app to read more