Federal Judges Block Trump Administration’s Restrictions on Public Service Loan Forgiveness Program

07/01/2026, 09:36 AM business announcement

Two federal judges have ruled against a regulation from the Trump administration that aimed to redefine 'qualifying employer' for the PSLF program, which was set to take effect on July 1. U.S. District Judge Amir Ali and Judge Myong Joun both found the new restrictions to be unlawful, with Joun stating that the rule violated the First Amendment.

The PSLF program, established in 2007, allows borrowers working in public service roles to have their student loans forgiven after ten years. An estimated 9 million borrowers could benefit from this program. Critics of the Trump administration's rule argued that it would unfairly exclude many non-profit organizations, particularly those involved in advocacy for marginalized communities.

The Department of Education is currently assessing its next steps following the court's decision. As a result of these rulings, borrowers can continue to rely on their employment status for PSLF eligibility without fear of losing it due to the now-blocked restrictions

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