Colorado joins lawsuit against U.S. Dept. of Education over student loan forgiveness

Colorado has joined 21 states in a lawsuit against the U.S. Department of Education over placing restrictions on a student loan forgiveness program for public service employees.

It’s the latest lawsuit filed by Attorney General Phil Weiser, who is running for governor, against the Trump administration. He has so far pursued more than 40 lawsuits since January.

According to the lawsuit, a new federal rule deems certain state and local governments and nonprofit organizations ineligible for the Public Service Loan Forgiveness Program (PSLF) if they are found to have engaged in “activities or actions” that are “disfavored” by the Trump Administration, such as providing services for transgender children and promoting diversity, equity, and inclusion.

The program allows public service workers to have the remainder of their federal student loan debt forgiven after 10 years on the job and consistent payments toward the debt. Since its establishment in 2007, the program has forgiven the debt of over one million public service employees.

In their lawsuit, the attorneys general argued that the new rule is illegal as it targets and punishes certain states and organizations the administration doesn’t agree with.

“Public service loan repayment is a legal requirement and a promise to those entering into public service,” Weiser said. “To undermine access to this promise and punish certain public servants is appalling and illegal. We won’t stand for this administration’s bullying tactics and playing political games with public servants’ financial security.”

The attorneys general are asking the court to declare the rule unlawful and bar the Department of Education from enforcing or implementing it.


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