Two lawsuits have been filed against the DOE challenging the Trump administration’s new rule limiting Public Service Loan Forgiveness (PSLF) for nonprofit and government employees. Filed in Massachusetts federal court by a coalition of nonprofits, cities, and 21 state attorneys general, the suits allege the rule exceeds DOE authority and violates the Administrative Procedure Act. Critics warn it could penalise organisations supporting diversity initiatives, gender-affirming care, or undocumented immigrants, potentially affecting tens of thousands of federal borrowers.
