Public Service Loan Forgiveness rule opposed by attorneys general
California Chief Public Prosecutor Rob Bonda speaks at a press conference in February 2024.
CNBC
Approximately two dozen lawyers and various consumer groups and defenders, opposition A popular student loan for the government and non -profit employees of the Trump administration for the proposed arrangement to narrow the suitability for the forgiving program.
22 lawyers recorded criticism a letter On Wednesday, the secretary of the Education Department McMahon. On Thursday, 254 organizations – including NaACP, Cancer Network and Florida Institute of Justice – also a letter Trump condemns the PSLF rule proposed by the administration.
“California Chief Public Prosecutor Rob Bonda said,” Millions of Americans throughout the country, with the promise of debt evacuation promises to become public officials, and now Trump administration, this debt evacuation vehicle is trying to keep the hostage hostage in the actions of the president. ” He said.
President George W. Bush in 2007, the public service loan forgiveness program, the profit for non -profit and government employees after 10 -year payments of federal student loans allow the cancellation.
President Donald Trump is a executive order In March, “illegal migration, human trafficking, child smuggling, widespread damage to public property and deterioration of public order” employed by the organizations employed by the organizations employed by the PSLF “will not” “said.
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In August, the US Ministry of Education Giving Based on this execution order, the decision -making decision on the proposed decisions about regulations to stop loan forgiveness for certain employees within the scope of PSLF. In the proposed rule, the training department said changes “May delay or prevent forgiveness for a subset of borrowers. “
Until September 17, people were given to comment on the proposed rules. Arrangements.govand lawyers sent general Their letter This is the last date to McMahon.
The US Department of Education immediately did not respond to the request for comments.
AGS letter was signed by Arizona, California, Colorado, Connecticut, Delaware, Columbia Region, Hawaii, Illinois, Mainine, Maryland, Nevada, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont, Washington and Wisconin.
The letter of consumer groups comes from a series of organizations consisting of millions of students, debtors, health workers, government employees, educators, color people, veterans, women, immigrants, disabled people and student loan debt.
“It is clearly contrary to the constitution, illegal and harmful to millions of debts throughout the country.”
Concern about who will be excluded
In his letter, the Chief Public Prosecutors wrote that the uncertainty of the regulatory language would lead to uncertainty about which employers are suitable for PSLF and would give extensive authority to exclude programs that they did not approve of Trump administration.
According to a press release from Bonda’s office, “ED may see the state of California or certain California state institutions, which are not suitable for PSLF, to reject the credit assistance to the state employees and to reduce the ability of the state to hire and hold the skilled employees”.
Trump’s executive orders targeted immigrants, Transsexual and neutral people And employees to increase diversity in private and public sector. Many non -profit organizations work in these areas, provide legal support or perform advocacy and training activities.
“There are borrowers working for these organizations.” Betsy Mayotte, Student Credit Consultants InstituteHe told CNBC in March.
The proposed rule is ‘illegal’, lawyers generally
The US Department of Education is trying to create illegal exceptions for the Congress’s Open Legal Command “and wrote in the Chief Public Prosecutor’s letters.
When the program was created, the Congress said that PSLF would be presented to any government -working debtor or a non -profit 501 (c) (3) non -profit debtor.
Consumer defenders made the same argument and said the legal difficulties in the rule were likely.
When Jessica Thompson, the Senior Vice President of the University Institute of Access and Achievement, first signed the CNBC’s execution order at PSLF, the PSLF program, which was created by the Congress almost 20 years ago, does not allow which non -profit organizations should be entitled to choose and choose. ” He said.
Student Loan Borrowers should know
Experts, currently the best option of the borrowers, existing employers, considering that the PSLF was previously qualified, he says.
Because, in accordance with the regulations of Trump’s administration, it is fully unclear that it will not be accepted as a qualified employer for PSLF. Some experts also say that compliance changes can be challenged in court.
Mayotte said that any revision of the PSLF program could not be retrospectively.
This means that if you are currently working for an organization where the Trump administration then excludes the program, or if you work before, you will still get a loan for that time – at least until the rule changes come into force.
