Student-loan borrowers win as Trump drops legal battle to narrow a major forgiveness program for public servants

The Trump administration has decided to drop its appeal of a ruling that blocked its plan to limit the Public Service Loan Forgiveness (PSLF) program, a victory for student-loan borrowers pursuing the forgiveness program. The Education Department's plan, which was set to take effect on July 1, would have excluded employers who did not align with the administration's definition of public service, including actions such as assisting with gender-affirming care or acts of terrorism.

A judge ruled in June that the plan was unlawful, and the administration had appealed the ruling at the end of August. With the appeal now set to be dismissed, borrowers will not face any immediate changes to PSLF, although another appeal in a separate PSLF lawsuit is still pending. Advocacy groups and nonprofits, including Student Defense, welcomed the ruling, stating that it is a significant victory for millions of Americans who have dedicated their careers to public service.

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