MONTPELIER, Vt. (WCAX) – Vermont and New York are among 21 states suing the U.S. Department of Education over student loan forgiveness.
The 21 attorneys general filing the lawsuit say a new federal rule illegally restricts which employers are eligible for public service loan forgiveness. That’s when government and nonprofit employees can have their federal student loans cleared after 10 years of service.
But the Trump administration says organizations doing “illegal” actions wouldn’t be eligible.
States involved in the lawsuit are concerned that those organizations could include those working with transgender youth, undocumented immigrants or diversity issues.
The lawsuit says the rule is designed to punish states or organizations that the Trump administration doesn’t like.
The states joining the lawsuit include Arizona, California, Colorado, Connecticut, Delaware, the District of Columbia, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont, Washington, and Wisconsin.
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