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Judges Block Trump Loan Forgiveness Rules, Day Before Effect

7/1/2026

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Story summary
  • U.S. District Judges Myong Joun and Amir Ali blocked the U.S. President Donald Trump administration’s Loan Forgiveness eligibility rules one day before rules took effect.
  • Judge Myong Joun said the department’s illegal-activity definitions were not tied to criminal statutes and that agencies cannot create prohibitions through rulemaking.
  • Under Secretary of Education Nicholas Kent said department will review steps.
  • Leaders Diane Yentel and Aaron Ament called the rulings victories for borrowers.