Trump administration ends fight over public Service Loan forgiveness
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The Trump administration dropped its appeal of a court ruling that prevented it from narrowing eligibility for the Public Service Loan Forgiveness program, a benefit for government and nonprofit workers in the United States.
In June, a judge determined the administration’s plan to limit which employers qualified as “public service” was unlawful. The Education Department had planned to exclude employers that didn’t align with its definition, including those offering gender-affirming care or involved in activities the administration labelled as terrorism.
Student Defense and other advocacy groups filed lawsuits challenging the plan, arguing the education secretary lacked the authority to make those changes. The administration initially appealed the ruling in August, but has now agreed to dismiss those appeals. As a result, borrowers pursuing loan forgiveness through PSLF will not see immediate changes to the program’s requirements. However, borrowers still encounter difficulties with the program.
The Education Department recently removed some payments toward forgiveness due to coding errors and has faced reports of delays in counting payments. Despite these ongoing issues, a spokesperson said the department is working to accurately credit all qualifying payments. Another appeal in a separate PSLF lawsuit remains pending.
