Maine joins lawsuit against Trump administration over new student loan forgiveness rule

A coalition of Democratic attorneys general, including Aaron Frey of Maine, are seeking to block the U.S. Department of Education from moving forward on new restrictions for its student loan forgiveness intended for government and certain nonprofit employees. 

The lawsuit was filed by the Commonwealth of Massachusetts in Boston federal district court on Monday.

The rule published Friday changes the definition of a “qualifying employer” under the Public Service Loan Forgiveness (PSLF) program to exclude certain organizations that engage in “specific enumerated illegal activities.” 

Such activities are defined by the Trump administration as supporting undocumented immigrants and promoting diversity and transgender advocacy, the latter described as “engaging in the chemical and surgical castration or mutilation of children.”

The 22 Democratic AGs claim those revisions effectively give the U.S. Department of Education broad authority to target specific activities disfavored by the Trump administration.

“To accomplish this goal, the rule purports to empower the Department of Education to serve as a roving enforcer of the administration’s animus by stripping PSLF eligibility from employers whose actions it dislikes,” the lawsuit states. “Put simply, the final rule is nothing more than a laundry list of this administration’s policy priorities designed to attack lawful conduct it does not agree with.”

The AGs argue the rule violates the Administrative Procedure Act and exceeds the Education Department’s authority.

Joining Maine and Massachusetts in the suit are AGs from Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont, Washington, Wisconsin, and the District of Columbia.

Created under then-president Geroge W. Bush in 2007, the federal Public Service Loan Forgiveness program allows government and nonprofit to apply to have their remaining federal student loans canceled after 10 years of service and monthly loan payments.

The coalition is asking the court to declare the rule unlawful and block the new rules from taking effect next year — as does a separate lawsuit filed in Massachusetts by a group of nonprofits and city and county governments.

“Bending the knee to this president cannot and will not be a prerequisite for this program, and we will fight to ensure that politics remains untethered to what it means to be a public servant in America,” Rhode Island Attorney General Peter Neronha said in a statement Monday. “Public service knows no political party.”

Under Secretary of Education Nicholas Kent called the revisions “common sense.”

“It is unconscionable that the plaintiffs are standing up for criminal activity,” he said in a statement Tuesday. “The final rule is crystal clear: the Department will enforce it neutrally, without consideration of the employer’s mission, ideology, or the population they serve.”

The case has been assigned to Judge Myong J. Joun, a Biden nominee.

Lauren McCauley contributed to this report.