Education

Student Loan Update: DOJ Issues Major Lawsuit Over Forgiveness

Student Loan Update: DOJ Issues Major Lawsuit Over Forgiveness

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.
What To Know
Launched in 2021 during a state takeover of the city’s schools, the “Educators of Color Loan Forgiveness Program” was funded by the Rhode Island Foundation and promoted as a way to attract and retain a more diverse workforce.
Federal officials argue the program unlawfully excluded white teachers, in violation of Title VI of the Civil Rights Act of 1964.
In their complaint, DOJ attorneys are seeking to halt or dismantle the program.
In a joint statement, the agencies said: “Over the last few months, Providence Public School District (PPSD) and the Rhode Island Department of Education (RIDE) worked in good faith with the U.S. Department of Justice to reach a resolution on this matter. PPSD and RIDE officials have not been served, and we were not informed by federal representatives that they would proceed with a lawsuit. Since there is active litigation, PPSD and RIDE will not be commenting further.”
The dispute comes as the administration escalates its campaign against DEI initiatives.
In February, the Department of Education issued guidance warning that race-based hiring or support programs may violate federal law, calling such practices a form of “toxic indoctrination.” A federal court has since blocked that directive, but it underscored the government’s stance.
Rhode Island officials have also clashed with Washington over funding. During the summer, the state joined more than 20 others in a lawsuit after the Trump administration froze billions in federal education funds, citing concerns about “woke ideology.”
A settlement in late August freed roughly $29 million for Rhode Island schools, due by October 3.
National Stakes
Critics, including the American Federation of Teachers and other diversity advocates, argue that the DOJ lawsuit undermines efforts to build a more representative teacher workforce.
Supporters, citing the DOJ’s own complaint and the Department of Education’s February guidance, counter that programs limited to specific racial groups violate Title VI and the principle of equal treatment under the law.
The case will test whether the U.S. Supreme Court’s ruling in Students for Fair Admissions v. Harvard extends into K-12 hiring and retention policy.
Providence schools, under state control since 2019 after a scathing Johns Hopkins report found widespread academic and administrative failure, face another layer of uncertainty.
What People Are Saying
The Justice Department described the initiative as “blatant race discrimination” and said it violated “long-standing prohibitions against treating individuals differently based on race.”
Department of Education guidance, in February: “Educational institutions have toxically indoctrinated students with the false premise that the United States is built upon ‘systemic and structural racism’ and advanced discriminatory policies and practices. But under any banner, discrimination on the basis of race, color, or national origin is, has been, and will continue to be illegal.”
AFT lawsuit against the Department of Education: “No federal law prevents teaching about race and race-related topics, and the Supreme Court has not banned efforts to advance diversity, equity, and inclusion in education. The Department of Education is attempting to establish a new legal regime when it has neither the lawmaking power of Congress nor the interpretative power of the courts.”
What Happens Next
The Providence case now heads to federal court, where judges will decide whether to block the loan forgiveness program. If the DOJ prevails, race-based teacher recruitment incentives may be struck down nationwide. If Providence wins, schools could retain limited leeway to design diversity initiatives, though under heavy scrutiny.