Public Service Loan Forgiveness overhaul dropped, filing shows
Summary
The Trump administration has stopped trying to change the Public Service Loan Forgiveness (PSLF) program after a court ruled the changes were illegal. This means the program remains as it was, allowing public service workers to have their student loans forgiven after ten years of qualifying payments.Key Facts
- The Public Service Loan Forgiveness program helps people working in government jobs, public schools, police, fire departments, public hospitals, and nonprofits get some student loans forgiven after 10 years of payments.
- The Trump administration proposed changes in 2025 to bar people from the program if their employer was involved in illegal activities like terrorism or human rights violations.
- Courts ruled that the proposed changes were beyond the Education Department’s authority and could violate free speech rights.
- Multiple nonprofits and cities challenged the rule in court.
- The Trump administration decided to drop its appeal against the court ruling that blocked the overhaul.
- About 720,000 federal student loans were forgiven through the program from 2018 to mid-2025.
- Nonprofit leaders said removing the new rule protects employees and maintains the program as Congress intended.
- The program cancellation is based on making 120 monthly payments while working full time in public service.
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