Federal Investigation EXPOSES Race-Based Loan Scandal

The Providence Public School District’s so-called “Educator of Color Loan Forgiveness Program” is under federal investigation after offering up to $25,000 in student loan relief exclusively to non-White teachers, sparking outrage over blatant racial discrimination and leaving taxpayers and educators wondering if sanity will ever return to our public institutions.

At a Glance

Providence Public School District (PPSD) created a loan forgiveness program only for non-White teachers.
Federal civil rights complaint filed, citing violation of Title VII of the Civil Rights Act.
The Department of Justice (DOJ) opened a formal investigation in March 2025.
Program faces national scrutiny as a test case for race-based incentives in education.

Federal Probe Targets Racially Exclusive Loan Forgiveness Program

The Providence Public School District’s “Educator of Color Loan Forgiveness Program” set aside $3.1 million to pay off student loans for teachers—so long as they weren’t White. The program, launched in partnership with the Rhode Island Foundation, restricted eligibility to those identifying as Asian, Black, Indigenous, Latino, biracial, or multi-racial. White teachers need not apply, no matter how deep their debt or commitment to the classroom. This isn’t some fringe group’s idea of “equity”—this is official district policy, rubber-stamped by the same bureaucrats who preach inclusion and fairness.

The resulting firestorm led the Legal Insurrection Foundation to file a civil rights complaint with the U.S. Department of Education. The complaint pointed straight to Title VII of the Civil Rights Act, which—last time anyone checked—still prohibits employers from discriminating based on race. The U.S. Equal Employment Opportunity Commission acknowledged the complaint in February 2023, but then sat on its hands for two years while the district carried on, business as usual, with taxpayer money. It wasn’t until March 2025, after mounting public pressure, that the Department of Justice finally announced a formal investigation to determine if this program was a “pattern or practice of discrimination based on race.”

District Defends Program While Excluding Whites

The Providence Public School District and its partners have made no secret of their intentions. Their official program page spells it out: eligible teachers must “identify as Asian, Black, Indigenous, Latino, biracial, or multi-racial.” Translation: if you’re White, your student loans are your own problem—no matter how much you’ve sacrificed to teach in one of the toughest districts in the state. The district claims this exclusion is just part of a broader effort to “diversify” the teaching staff. Never mind that many of the very people they’re locking out have dedicated their lives to serving the same kids and communities.

The Rhode Island Foundation, which provided the funding, echoes this logic, arguing that hand-picking beneficiaries based on skin color is simply “addressing inequities.” Meanwhile, they pocket praise from the usual activist crowd while ignoring the basic legal and ethical reality: discrimination is discrimination, no matter how you try to dress it up. The district’s public statements claim they are “an equal opportunity employer” that does not discriminate on the basis of race, sex, or national origin. If that isn’t doublethink straight out of Orwell, what is?

Federal and Legal Response: Slow, But Now in Motion

The Legal Insurrection Foundation, led by William Jacobson, has been relentless in pushing for accountability. Jacobson has repeatedly called out the glacial pace of the federal response, suggesting that politics—not justice—were behind the delay. Only after more than two years did the DOJ finally get off the bench and announce an investigation. As of March 2025, the probe is active, but there’s no final decision—meaning the district’s fourth round of applications for the race-based giveaway is still open and under review.

Local and national media have picked up the story, with legal experts from across the spectrum weighing in. While some argue that diversity initiatives are important, even they admit that programs excluding people by race are legally risky and almost certainly violate federal law. The district’s defenders insist that such measures are necessary to fix “systemic” disparities, but critics—including plenty of parents and teachers—see it for what it is: an attempt to divide people by race and pick winners and losers based on identity, not merit or service.

Implications: What’s at Stake for Schools and the Rule of Law

For now, teachers of color who qualified for the program face uncertainty about whether they’ll actually see any promised loan relief, while White teachers have been shut out altogether—unless, of course, the DOJ finds the program illegal and forces the district to open it up or shut it down. The $3.1 million set aside for the program is no small sum, and any changes could impact teacher recruitment, retention, and the district’s bottom line.

More broadly, this case has become a national flashpoint in the debate over so-called “equity” policies in education. The outcome could set a precedent for school districts around the country: if the feds allow Providence to get away with this, expect more districts to follow suit, using taxpayer dollars to promote discrimination in the name of diversity. If the DOJ rules against it, schools everywhere will have to rethink how they pursue diversity—hopefully by focusing on excellence and opportunity, not racial quotas. As usual, it’s everyday teachers, parents, and students who are caught in the crossfire of these top-down social experiments. Here’s hoping common sense and the Constitution ultimately win out.