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Feds want to cut student loan forgiveness for non-profits promoting DEI, illegal immigration

Student Loan Forgiveness Explainer
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BALTIMORE — Maryland is among more than 20 Democratic led states suing the federal government over a new rule concerning Public Service Loan Forgiveness (PSLF).

The program was established by Congress in 2007 which forgives outstanding federal student loan debt to government and nonprofit employees after they've paid for 10-years.

PSLF is seen as a tool that helps recruit and retain workers in the education, health care, and law enforcement fields.

Recently the Trump Administration announced a change that would disqualify some applicants that would normally be eligible.

According to Brown, the feds don't want to forgive loans for those who've worked for organizations or programs that assist, promote, and support issues like illegal immigration, Diversity Equity and Inclusion, or gender affirming healthcare.

"We will not allow the federal government to weaponize student debt relief and punish public servants just because their work is at odds with the Trump administration’s political agenda," said Brown.

The Administration argues, they simply don't want to reward those associated with illegal activity.

Like many of Brown's lawsuits, this latest one was filed out-of-state in Massachusetts, a district with an overwhelming majority of Democratic appointed judges who've proven likely to rule in favor of the states, setting up a potential appeal.

As of now the rule would take effect in July 2026.

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