After court setback, Trump drops legal battle to narrow major student loan forgiveness program for public servants
Judge blocks planned rule
The Education Department had planned to begin enforcing the rule on July 1. It would have excluded some employers from the Public Service Loan Forgiveness program based on the administration’s definition of “public service.” The department’s examples included assisting with gender-affirming care and what it described as “acts of terrorism.” At the end of June, a judge ruled the plan unlawful and blocked it from taking effect.
Advocacy groups challenged changes
The ruling followed lawsuits brought by advocacy groups and nonprofits, including Student Defense. The organization argued that the education secretary did not have authority to introduce the changes. Student Defense chief counsel Dan Zibel called the administration’s effort to restrict the program “anti-democratic and unlawful.” He described the court decision as a significant victory for people who have dedicated their careers to public service.
Department described its aims
Undersecretary of Education Nicholas Kent previously said the rule was intended to direct federal benefits to teachers, first responders and civil servants serving their communities. A department spokesperson said the agency remained committed to making sure qualifying payments were credited to borrowers’ accounts. The court ruling means the planned employer restrictions will not take effect.
Key points
- A judge ruled the planned Education Department restrictions unlawful at the end of June.
- The rule was scheduled to begin July 1 and would have excluded some employers from PSLF.
- Student Defense and other groups challenged the department’s authority to make the changes.
- The department said it would continue ensuring qualifying payments are credited to borrowers’ accounts.