A federal district court Tuesday vacated the Trump administration’s Public Service Loan Forgiveness, or PSLF, rule that would have allowed the U.S. Department of Education to exclude otherwise eligible employers from the program based on a “substantial illegal purpose” standard.
The court’s decision leaves existing PSLF eligibility rules in place and prevents the new restrictions from taking effect on July 1.
“This decision marks an important victory for public servants and the rule of law,” Jaylon Herbin, director of federal campaigns at the Center for Responsible Lending, an advocacy organization, said in a statement. “Congress made clear who qualifies for Public Service Loan Forgiveness, and the Department of Education cannot rewrite that statute by creating new eligibility restrictions that Congress never authorized.”
Herbin said the center urges the department to respect the court’s decision and focus on administering the program Congress created.
“The millions of borrowers pursuing Public Service Loan Forgiveness deserve a program that is stable, transparent and consistent with the law,” he said. “Every eligible public servant should have confidence that the promise Congress made will be honored – without exception.”
