Federal Judges Block Trump Administration Rule Narrowing Public Service Loan Forgiveness
Two federal judges struck down Trump administration changes to the Public Service Loan Forgiveness program, blocking an Education Department rule that would have narrowed eligibility for some public service workers.
The rulings came shortly before the rule was scheduled to take effect. U.S. District Judge Myong Joun in Massachusetts vacated the department’s changes, while U.S. District Judge Amir Ali in Washington, D.C., issued a similar ruling in a separate case brought by nonprofit organizations.
The program, created by Congress in 2007, forgives remaining federal student loan debt for eligible borrowers after 10 years of qualifying public service employment and monthly payments. The Education Department rule would have changed the definition of a qualifying employer to exclude organizations deemed to have a substantial illegal purpose, including certain activity tied to immigration, terrorism, discrimination, and gender-affirming care.
Subscribe free for daily political analysis they won’t broadcast. Join 110K+ readers →
The policy consequence is immediate. Public service workers remain under the existing PSLF framework while the administration decides whether to appeal or take another legal route.
Borrower advocates and nonprofit plaintiffs framed the rulings as a protection against political retaliation. Public Citizen attorney Cormac Early said public service workers deserve loan forgiveness on the terms Congress promised, while Student Defense said borrowers should not fear punishment based on an employer’s mission or perceived political views.
The Education Department defended the rule. Under Secretary Nicholas Kent said the department stood behind the policy and was evaluating next steps, arguing taxpayer dollars should not subsidize illegal activity.
The next step is litigation risk. Unless a higher court revives the rule, the administration cannot use this version of the policy to cut off PSLF eligibility.
Subscribe free for daily political analysis they won’t broadcast. Join 110K+ readers →