Federal Judge Blocks Changes To Public Service Loan Forgiveness Program

CHICAGO — Illinois Attorney General Kwame Raoul and attorneys general from 21 other states won a court ruling blocking a U.S. Department of Education rule that would have restricted eligibility for the Public Service Loan Forgiveness program. A federal judge in Massachusetts ruled the policy was illegal and permanently barred it from taking effect. The rule would have allowed the federal government to deny loan forgiveness eligibility to certain state agencies, hospitals, schools, and nonprofit organizations based on activities the administration considered unlawful. The Public Service Loan Forgiveness program forgives eligible federal student loans after 10 years of qualifying public service and payments.