Home Economy Economic Activity Neronha joins lawsuit challenging rule change on public service loan forgiveness

Neronha joins lawsuit challenging rule change on public service loan forgiveness

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PBN Staff

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11/03/2025

Neronha (1) — R.I. ATTORNEY GENERAL Peter F. Neronha and 21 other attorneys general sued the U.S. Department of Education Monday for unlawfully restricting eligibility for the Public Service Loan Forgiveness program. / COURTESY PETER F. NERONHA

PROVIDENCE – Attorney General Peter F. Neronha and 21 other attorneys general sued the U.S. Department of Education Monday over a new rule that they claim would unlawfully restrict eligibility for the Public Service Loan Forgiveness program. Established by Congress in 2007, the Public Service Loan Forgiveness program forgives borrowers’ remaining federal student loan debt

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PROVIDENCE – Attorney General Peter F. Neronha and 21 other attorneys general sued the U.S. Department of Education Monday over a new rule that they claim would unlawfully restrict eligibility for the Public Service Loan Forgiveness program. Established by Congress in 2007, the Public Service Loan Forgiveness program forgives borrowers’ remaining federal student loan debt after 10 years of qualifying public service. However, a new federal rule finalized on Oct. 31 would deem certain state and local governments or nonprofit organizations ineligible employers for loan forgiveness if the federal government determines they have engaged in actions with a substantial illegal purpose – in practice, activities or actions that are disfavored by the Trump administration. The attorneys general claim the rule, scheduled to take effect in July 2026, includes only a very limited definition of such “illegality” and argue that it is targeted to punish states and organizations that the administration does not like. The coalition is asking the court to declare the rule unlawful and block its enforcement. “Many of these state employees have student loan debt, and for some, the PSLF program provides life-changing financial relief in exchange for their dedication to serving their fellow Rhode Islanders,” Neronha said. “Here, this administration is telegraphing that unless you serve [President Donald Trump’s] agenda, you’re not performing public service, and therefore not eligible for the program. That’s not acceptable, that’s not legal, and that’s not who we are as a country.” Joining Neronha in the lawsuit are the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, Vermont, Washington, Wisconsin, and the District of Columbia.