URGENT: Trump Administration Threatens Loan Cancellation for Cities Defying Orders

BREAKING NEWS: Trump Administration Threatens Loan Cancellation for Cities Defying Orders The Trump administration is set to deny loan forgiveness to public workers in cities that defy its orders, according to a lawsuit filed by the cities of Albuquerque, Boston, Chicago, and San Francisco. The cities are suing the administration over changes to the Public Service Loan Forgiveness program, which was created by Congress in 2007. The U.S. Department of Education plans to deny loan forgiveness to workers whose government or nonprofit employers engage in activities with a "substantial illegal purpose," starting from July 1, 2026. This change will allow the department to cancel loan forgiveness for public workers in cities that defy the administration's orders. The Public Service Loan Forgiveness program was designed to cancel federal student loan debts for borrowers who spend a decade working in public service. The lawsuit, which also includes the nation's two largest teachers unions and the American Federation of State, County and Municipal Employees, aims to force the Trump administration to stop delaying student loan forgiveness. The U.S. Department of Education has published a rule change to PSLF, which will give the department the power to define what constitutes a "substantial illegal purpose." This decision will have a significant impact on public workers in cities that defy the administration's orders. The lawsuit is currently pending, and the next developments will be closely watched. This is a developing story, and we will provide updates as more information becomes available.