it finalized a rule<\/a> that would redefine what “public service” means and bar employers that engage in “substantial illegal activity.” The administration said such activities could include gender-affirming care or harboring illegal immigrants.<\/p>\nCourtney said in a statement that the new rule “would pick and choose which public servants are eligible for forgiveness based on the Trump Administration’s ideological agenda, which clearly goes against Congressional intent.”<\/p>\n
The rule would take effect on July 1.<\/p>\n
“With this new rule, the Trump Administration is refocusing the PSLF program to ensure federal benefits go to our Nation’s teachers, first responders, and civil servants who tirelessly serve their communities,” Undersecretary of Education Nicholas Kent previously said in a statement.<\/p>\n
If the department determines an employer engaged in illegal activity, the employer would be notified and given an opportunity to rebut the findings. If the employer is disqualified, they can reapply to be eligible for PSLF within 10 years or enter a “corrective action plan” in cooperation with the department.<\/p>\n
The rule has already faced legal challenges. In November 2025, a coalition of cities and nonprofits sued the administration<\/a>, arguing that limiting PSLF would harm nonprofit recruitment.<\/p>\nHave a story to share about student loans? Contact this reporter at <\/em>asheffey@businessinsider.com<\/em><\/a>.<\/em><\/p>\n<\/p><\/div>\n