(The Center Square) – Attorney General Phil Weiser recently announced Colorado has joined 21 other attorneys general in suing the Trump administration for “unlawfully” restricting eligibility for federal student loan relief.
Colorado, California, New York and Massachusetts are co-leading the lawsuit. The Center Square previously reported on a news conference announcing the suit, which was filed by attorneys general from 20 states and Washington, D.C.
The Public Service Loan Forgiveness program currently allows eligible government and nonprofit employees to get student loan relief after 10 years of service.“Public service loan forgiveness is a legal requirement and a promise to those entering into public service,” Weiser said. “To undermine access to this promise and punish certain public servants is appalling and illegal.”
This comes after the Trump administration announced a new federal rule that would end eligibility for employees if the administration determined employer, which could include a state government, had a “substantial illegal purpose.” This rule is set to take effect July 2026.
The plaintiffs argued in the lawsuit that this will allow the administration to “cherry-pick” disfavored groups and activities and punish their employees by denying them loan forgiveness.
From October 2021 to May 2024, 17,650 borrowers in Colorado had more than $1.2 billion in student loan debt forgiven through the Public Service Loan Forgiveness program.
In total, since it was first created by Congress nearly two decades ago, the program has forgiven more than $85 billion in federal student loans.
Eligible public service workers often include police officers, firefighters, military personnel, teachers, nurses and many others.
Weiser’s office brought up some concerns with specific activities that could be unfavorable to the Trump administration, including supporting illegal immigration, providing transgender health care to children and engaging in political protests.
“We won’t stand for this administration’s bullying tactics and playing political games with public servants’ financial security,” Weiser said.
The attorneys general’s lawsuit argues the new rule is “arbitrary and capricious” and asks the court to declare the rule unlawful, vacate it, and bar the U.S. Department of Education from implementing it.
Colorado especially has a stake in this lawsuit as it has been a critical player in the coalition of Democratic states fighting against the many cuts pushed by the Republicans.
In the past 10 months, Colorado has joined or filed 43 lawsuits against the Trump administration.
