MONTPELIER, Vt. (WCAX) - Vermont and New York are among 21 states suing the U.S. Department of Education over student loan forgiveness.

The 21 attorneys general filing the lawsuit say a new federal rule illegally restricts which employers are eligible for public service loan forgiveness. That’s when government and nonprofit employees can have their federal student loans cleared after 10 years of service.

But the Trump administration says organizations doing “illegal” actions wouldn’t be eligible.

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New Trump administration rule bars student loan relief for public workers tied to ‘illegal’ activity

States involved in the lawsuit are concerned that those organizations could include those working with transgender youth, undocumented immigrants or diversity issues.

The laws

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