Education Department Appeals Ruling Blocking PSLF Eligibility Restrictions

The United States Department of Education appealed a June court ruling on Thursday that blocked an administration plan to restrict eligibility for the Public Service Loan Forgiveness (PSLF) program. The proposed rule, which was slated for implementation on July 1, would have granted the education secretary authority to disqualify employers that do not align with the administration's definition of public service.

Specifically, the rule targeted employers providing gender-affirming care, supporting illegal immigration, or advancing terrorism. District Judge Amir Ali previously blocked the measure, ruling that the education secretary lacked the congressional authority to determine which employers qualify for the program. While the appeal prevents immediate changes to the program, the case will now proceed to the DC Circuit.

Undersecretary of Education Nicholas Kent defended the rule as a necessary step to ensure federal benefits reach legitimate public servants. Conversely, borrower advocacy groups, including Student Defense, argue the rule is politically driven and harms public servants who rely on the program.