Court Blocks Education Dept Loan Rule | Dayton News

Dayton News Today | 2 Min News | The Daily News Now! · Jul 1, 2026 · 1m

Two federal judges have blocked the Department of Education’s attempt to overhaul the Public Service Loan Forgiveness program, ruling the agency overstepped its authority by introducing rules that could target nonprofits and government groups based on political alignment. The new policy, set to take effect July 1, would have excluded workers from loan forgiveness if their employers had a “substantial illegal purpose”—a vague standard the court found unmoored from actual law. With no one defending the rule and over a million borrowers already benefiting from the program, the courts sided with…