Key facts
- Lawsuits challenge President Donald Trump's student loan policy changes.
- A judge blocked a narrowed definition of professional degrees, impacting borrowing caps.
- The Public Service Loan Forgiveness program's eligibility limits were blocked by judges.
- A lawsuit aims to prevent the forced transition of SAVE plan borrowers to other repayment options.
Multiple lawsuits are challenging key provisions of President Donald Trump's student loan policy changes, which began taking effect on July 1. These legal battles aim to block or pause elements including a narrowed definition of professional degrees, limits to the Public Service Loan Forgiveness (PSLF) program, and the elimination of the SAVE plan.
On June 24, US District Judge Beryl Howell blocked the Education Department from implementing its revised definition of a professional degree, which would have excluded certain programs like advanced nursing from a higher $200,000 lifetime borrowing cap. The ruling stated the administration's plan was unlawful and could worsen healthcare worker shortages. The department has since issued interim designations for programs to comply with the court's order.
Separately, two federal judges blocked the department's rule to restrict PSLF eligibility just before it was set to take effect. This rule would have disqualified employers deemed not to meet the administration's definition of "public service," such as those supporting gender-affirming care. Advocacy groups argued this was an overreach of authority. The Education Department stated it is evaluating next steps regarding this ruling.
Furthermore, a lawsuit filed by Public Goods Practice seeks to halt the forced transition of borrowers from the SAVE plan, an income-driven repayment scheme, to other plans. The lawsuit argues that the department must offer the benefits of the earlier REPAYE plan now that SAVE has been eliminated. The department disputes these claims and encourages borrowers to apply for the new Repayment Assistance Plan.