Student Loan Update: Trump Admin Takes New Step to Limit Forgiveness
On Thursday, the Department of Education appealed a federal court ruling over which employers qualify for PSLF.
The Trump administration is seeking to further restrict eligibility for the Public Service Loan Forgiveness (PSLF) program, which allows qualifying federal employees to have remaining student loan balances forgiven after 10 years of payments. The Department of Education has filed an appeal against a federal court ruling that blocked a regulation setting limits on which employers qualify for PSLF.
The administration contends these changes are needed to ensure federal benefits only go to organizations engaged in legitimate public service. The Department plans to implement a rule allowing the Secretary of Education to determine if an employer's activities disqualify it from PSLF eligibility. If successful, this could prevent some public service workers from accessing the relief Congress intended.
Two federal judges blocked the regulation earlier this summer, ruling that Congress did not grant the Education Department broad authority to independently decide which employers qualify beyond the standards set by law. Borrowers currently working toward PSLF will remain eligible under current program rules while the appeals process continues.
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