WASHINGTON — On June 30, 2026, a federal judge struck down an overhaul of the Public Service Loan Forgiveness (PSLF) program implemented during the Trump administration. The ruling favored advocates who argued that the changes risked turning the program into a tool for political retribution.
The judge ruled that the Education Department’s modifications exceeded the agency’s authority and threatened First Amendment protections related to free speech. This decision came just one day before the new rules were scheduled to take effect.
The PSLF program, established by Congress in 2007, was designed to encourage college graduates to pursue careers in government and nonprofit sectors by forgiving federal student loans after 10 years of public service employment.
The judge questioned the department’s justification for the new rules, noting internal estimates that fewer than 10 employers would be excluded from the program annually. Additionally, Joun, presumably the judge or a legal authority in the case, stated that the new regulations threatened to impose the administration’s policy views on employers.
The ruling followed lawsuits filed by more than 20 states, alongside a coalition of nonprofit organizations and cities. These groups contended that the changes undermined a critical benefit that helps attract college graduates to lower-paying public service jobs compared to the private sector.
The Education Department has not yet issued a comment regarding the ruling.
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