The exterior of the vidence School Department headquarters in vidence, RI on April 25, 2019. Lane Turner | Boston Globe | Getty ImagesThe U.S.
Department of Justice has filed a lawsuit alleging that Rhode Island's student loan forgiveness gram for teachers of color discriminates on the basis of race.Under the vidence Public School District initiative, "new teachers can receive student-loan repayments," the complaint filed on Tuesday said.
"The catch: white teachers are not eligible."The move is the in the Trump administration's efforts to get rid of diversity, equity and inclusion, or DEI, policies across the country.More from Personal Finance:Inflation is retirees' 'greatest enemy,' says inventor of 4% ruleThere's still time for 'super catch-up' 401(k) contributions for 2025Fewer people think retirement will 'take a miracle,' report findsThe Rhode Island student loan forgiveness gram offers up to $25,000 in education debt relief for teachers of color working in the vidence Public School District for three years.
Eligible teachers include those who identify as Black, Hispanic, Asian and American Indian, according to the DOJ complaint.Around 80% of public school elementary and secondary teachers identify as non-Hispanic white, according to a Pew Re Center report from last year.Asked to confirm gram details, the vidence Public School District and Rhode Island Department of Education did not vide an answer.
The district and department sent CNBC a joint statement, saying they had worked with the DOJ to reach a resolution over the student loan forgiveness gram."PPSD and RIDE officials have not been served, and we were not informed by federal representatives that they would ceed with a lawsuit," according to the statement.
"Since there is active litigation, PPSD and RIDE will not be ing further."The DOJ is seeking an injunction to halt the loan gram's use of race in its application, and an "award of equitable relief" to nonminority teachers who were not eligible for the gram based on their race.Don’t miss these insights from CNBC Nobel winner Joseph Stiglitz has a warning for bond investorsAs traditional 60/40 portfolios get riskier, BlackRock says investors should rethink their allocationsGoldman adds Walmart to September 'conviction list.' Here's who else made the cutNvidia retail buyers are getting exhausted