Changes to federal student loan system take effect Jul. 1
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A pair of federal judges struck down a Trump administration overhaul to a public service forgiveness program for student loans, ruling Tuesday in two separate cases in favor of advocates who said the program risked becoming a tool for political retribution.
By Nate Raymond BOSTON, June 30 (Reuters) - Two federal judges on Tuesday blocked U.S. President Donald Trump's administration from implementing a new rule stripping public service workers of eligibility for federal student loan forgiveness if it deems their employers to have a "substantial illegal purpose.
The Education Department wants to exclude employers that engage in DEI or activities that the Trump administration disapproves. The rule was set to take effect Wednesday.
The Trump administration sought to narrow a popular program designed to forgive the student debt of public service workers.
The Department of Education has framed the overhaul of the student loan system as a necessary move to simplify programs that have not served taxpayers for decades and helped push up the cost of tuition.
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Nursing and dozens of other programs are officially added to Trump's higher student-loan limits
After a court ruling, the Education Department issued a new rule that includes dozens more programs in the higher student-loan borrowing caps.
The amended lawsuit argues that borrowers with student loans in the SAVE plan shouldn’t be forced to move into other repayment plans, a process set to begin next week.
