Trump administration appeals ruling blocking student loan forgiveness program changes

The Trump administration is renewing its effort to restrict eligibility for the Public Service Loan Forgiveness (PSLF) program, which offers student debt relief to public sector employees. On Thursday, the Department of Education filed an appeal against a June court decision that had halted the administration's plan to narrow the program's scope.

The PSLF program allows government and nonprofit workers to have their student debt forgiven after making 10 years of qualifying payments. The administration had intended to implement a rule on July 1 that would have disqualified employers based on the administration's interpretation of 'public service,' excluding entities involved in activities such as providing gender-affirming care, supporting illegal immigration, or advancing terrorism.

Under the proposed rule, the education secretary would have the authority to determine an employer's eligibility, with employers having a chance to contest such findings. If unsuccessful, affected borrowers would lose progress toward forgiveness unless they found employment with a qualifying entity.

Nonprofit organizations and advocacy groups filed lawsuits challenging the rule, asserting it was politically motivated and would negatively impact public service workers and their employers. District Judge Amir Ali agreed, stating in his ruling that if Congress had intended for the education secretary to have such power, "it knew how to do so."

With the appeal, the PSLF program remains unchanged for borrowers at this time. The case will proceed through the D.C. Circuit Court of Appeals for a new determination. Aaron Ament, president of the borrower advocacy group Student Defense, expressed confidence in upholding the ruling, stating, "We look forward to arguing before the DC Circuit to uphold this ruling that the Trump PSLF Rule was illegal, and ensuring that the government upholds its promise to our teachers, first responders, servicemembers and countless more public servants."

Undersecretary of Education Nicholas Kent previously stated that the rule's intent was to "ensure federal benefits go to our Nation's teachers, first responders, and civil servants who tirelessly serve their communities."