Trump Administration Student Loan Forgiveness Limits Blocked by Federal Judges
Two federal judges struck down Trump administration changes to the Public Service Loan Forgiveness program, blocking an Education Department rule that would have narrowed which employers qualify for the federal benefit.
The rulings came one day before the rule was set to take effect. The program forgives remaining federal student loan debt for eligible borrowers after 10 years of qualifying public service work and payments. The disputed rule would have allowed the Education Department to exclude employers deemed to have a substantial illegal purpose.
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Plaintiffs and borrower advocates called the rulings a protection for teachers, nonprofit workers, military personnel, and other public servants. The Education Department defended the rule as a taxpayer protection measure and said it was reviewing next steps.
The legal consequence is clear. For now, PSLF eligibility cannot be narrowed under the struck-down rule unless a higher court revives the policy or Congress changes the law.
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