Student Loan Update: DOJ Issues Major Lawsuit Over Forgiveness

Source: Newsweek

Published Sep 22, 2025 at 3:01 PM EDT | Updated Sep 23, 2025 at 3:24 AM EDT


The Department of Justice has sued the Providence Public School District and the Rhode Island Department of Education, accusing them of "blatant race discrimination" over a loan forgiveness initiative aimed at diversifying the teaching force.

The lawsuit, filed Tuesday in federal court in Providence, challenges a program launched in 2021 that provided up to $25,000 in debt relief exclusively for teachers of color and was funded by the Rhode Island Foundation.

Why It Matters

The case is more than a local dispute. It's a flashpoint in the national fight over race-conscious policies in education.

At stake is whether efforts to diversify the teaching workforce, long shown to improve outcomes for students of color, will survive a federal crackdown that interprets civil rights law to ban nearly all DEI (diversity, equity and inclusion) initiatives. The lawsuit will test how far courts extend the U.S. Supreme Court's 2023 affirmative action ruling beyond college admissions and could reshape how schools across the country recruit teachers, design support programs, and comply with federal law.

Read more: https://www.newsweek.com/student-loan-update-doj-issues-major-lawsuit-over-forgiveness-2133885