Education Department Appeals Ruling Blocking Trump-Era PSLF Restrictions
The Department of Education has appealed a federal court's decision that blocked a Trump administration rule aimed at narrowing the Public Service Loan Forgiveness (PSLF) program. The rule, which was set to take effect on July 1, 2026, would have allowed the Education Secretary to disqualify employers from the PSLF program if they were deemed to have engaged in "illegal purposes." This could have included organizations providing gender-affirming care, supporting illegal immigration, or advancing terrorism. Federal courts, including District Judge Amir Ali, ruled against the department, stating that Congress did not grant the Education Secretary such authority when establishing PSLF. The appeal means there are no immediate changes to the PSLF program, and borrowers are not yet affected. Advocacy groups, such as Student Defense, have expressed their intent to argue before the DC Circuit to uphold the ruling that deemed the Trump PSLF Rule illegal.