On Nov. 3, Rhode Island Attorney General Peter Neronha P’19 P’22 joined a coalition of 21 other attorneys general in filing a lawsuit against the U.S. Department of Education. The lawsuit argues that the Department of Education unlawfully restricted eligibility for the Public Service Loan Forgiveness program, which allows government and nonprofit employees’ student loans to be forgiven after 10 years of service.
The new federal rule — which is set to go into effect on July 1, 2026 — renders organizations ineligible for the PSLF program if the federal government determines that they have engaged in “unlawful activities such that they have a substantial illegal purpose, including supporting terrorism and aiding and abetting illegal immigration,” according to a Department of Education press release.
The release added that this would ensure PSLF benefits only go toward “borrowers employed by organizations that genuinely serve the public.”
But the lawsuit argues that if implemented, the rule would target “activities or actions that are disfavored by the administration” and “punish states and organizations that the administration does not like,” according to a press release from Neronha's office.
“This administration is telegraphing that unless you serve his agenda, you’re not performing public service, and therefore not eligible for the program,” Neronha said in the press release.
The Department of Education did not immediately respond to a request for comment.
“In Rhode Island, more than 14,000 people wake up every day and serve the people of our state, regardless of political ideology or affiliation,” Neronha continued. “Many of these state employees have student loan debt, and for some, the PSLF program provides life-changing financial relief in exchange for their dedication to serving their fellow Rhode Islanders.”
The press release explained that since its founding in 2007, the PSLF program has forgiven the federal student loan debt of more than 1 million public servants — enabling them to “pursue careers that might have otherwise been out of reach.”
Breana Alcantara ’27, co-president of Brown student organization Students for Educational Equity, added that the PSLF program is crucial to incentivize and award those who work in public service.
“The new PSLF restrictions further divert students away from careers in public service or the nonprofit sector, especially those burdened with significant debt,” Alcantara wrote in an email to The Herald. “To attract students to work in public service, there must be resources that lower the financial burden.”
With the change, “we cannot expect students to devote their lives to lower-paying roles,” particularly if they come from lower-income backgrounds, Alcantara added. “Students are diverted away from socially conscious work, not only due to financial considerations but also because of burnout in fields that are repeatedly attacked by federal actions.”
The implementation of this new rule could cause public workers to “suddenly lose PSLF eligibility through no fault of their own,” according to the press release from Neronha’s office. This could leave states with “staffing shortages, higher turnover and skyrocketing costs to maintain essential services.”
“It is disheartening to see progress and effort be reversed entirely,” Alcantara wrote.
Chad Pastorius, deputy director of the Rhode Island Student Loan Authority, said that in his experience, “when there have been changes to features and benefits of the (PSLF) program, existing borrowers have been grandfathered in based on the terms available at the time they took out the loan.”
But this new restriction, he said, “seems to deviate from the existing precedent.”
“Bending the knee to this President cannot and will not be a prerequisite for this program,” Neronha wrote. “We will fight to ensure that politics remains untethered to what it means to be a public servant in America.”
