Key facts
- Borrowers will not face immediate changes to the Public Service Loan Forgiveness program.
- The Education Department had intended to exclude employers not aligned with its definition of 'public service'.
- Student Defense called the administration's attempt to limit the program 'anti-democratic and unlawful'.
The Trump administration has agreed to drop its appeals of a June ruling that had blocked its plan to narrow eligibility for the Public Service Loan Forgiveness (PSLF) program. The decision, made on Wednesday, means that borrowers will not face immediate changes to the program, which forgives student debt for government and nonprofit workers after 10 years.
The Education Department had intended to implement a plan on July 1 to exclude employers from PSLF who did not align with the administration's definition of 'public service.' A judge ruled at the end of June that the plan was unlawful, following lawsuits filed by advocacy groups like Student Defense.
Dan Zibel, chief counsel at Student Defense, stated that the administration's attempt to limit the program was 'anti-democratic and unlawful from the start,' calling the outcome a significant victory for public servants. Undersecretary of Education Nicholas Kent had previously stated the rule was intended to ensure federal benefits go to teachers, first responders, and civil servants.