OLYMPIA, WA (MyBellinghamNow.com) – The state is suing the U.S. Department of Education over a new rule change that could leave thousands ineligible for student loan relief.

Monday’s lawsuit was filed by Washington and 20 other states over a recent change to the Public Service Loan Forgiveness program (PSLF).

“I believe strongly in protecting the rights of all Washington kids—including transgender youth,” Brown said. “Equal access to participation in sports is important to kids’ wellbeing, both emotionally and physically, and barring kids from school athletics because of their gender identity perpetuates the kind of discrimination our state has long sought to abolish.”

The program allows government and nonprofit employees to apply to have their federal student loans forgiven after 10 years of service.

But the Department of Education established a new rule last Thursday that lets it deem employees from certain agencies or organizations ineligible for the program if they have a “substantial illegal purpose.”

Those restricted activities include supporting terrorism, assisting with illegal immigration and providing medical procedures to transgender youth.

According to the state Attorney General’s Office, more than 23,000 borrowers from Washington had $1.6 million in student loans forgiven under the program over the past four years.

The states are asking a Massachusetts judge to stop the department from enforcing the rule, which would take effect in July 2026.