Trump Administration Drops Appeals Over PSLF Eligibility Ruling

The Trump administration agreed on Wednesday to drop two appeals of a June court ruling that blocked a plan to narrow eligibility for the Public Service Loan Forgiveness (PSLF) program. The U.S. Department of Education had intended to implement a rule on July 1 that would exclude employers from the program if they did not align with the administration's definition of public service, specifically citing actions such as providing assistance with gender-affirming care or acts of terrorism.

A judge previously ruled the plan unlawful following lawsuits from advocacy groups, including Student Defense, which argued the education secretary lacked the authority to make such changes. While this dismissal prevents immediate changes to PSLF eligibility, one appeal in a separate PSLF lawsuit remains pending.

Borrowers continue to face other administrative challenges, including payment credit delays and the removal of some payments resulting from Biden-era coding errors. The U.S. Department of Education stated it remains committed to ensuring qualifying payments are properly credited to borrower accounts.