October 30, 2025 | WASHINGTON, D.C. — The U.S. Department of Education today previewed a new rule that will unlawfully politicize the Public Service Loan Forgiveness (PSLF) program and harm employees of organizations that do not align with Trump-Vance Administration priorities. The new rule, which will be published tomorrow in the Federal Register, would allow the Secretary of Education to disqualify government and nonprofit employers that disagree with the Administration’s right-wing agenda from participating in the PSLF program. The rule would allow Secretary McMahon to target sanctuary jurisdictions, as well as nonprofit organizations providing support to immigrant families, gender-affirming care, diversity and equity in the workplace, and protecting the first amendment rights of protesters.
In 2007, a bipartisan Congress created the PSLF program to encourage public service and ensure that working in a public service job did not result in a lifetime of unaffordable student loan debt. The concept was simple: work for the federal, state, local, or Tribal government, or 501(c)(3) nonprofit employer for 10 years and make payments on your qualifying student loans, and the federal government will forgive the remaining debt. Congress tasked the U.S. Department of Education and Secretary of Education with administering this program. To date, more than one million workers have had their federal student loans forgiven through the PSLF program.
The new rule was met with an immediate commitment to challenge the policy in federal court by Democracy Forward and Protect Borrowers, which released the following joint statement on the new rule:
“This is a direct and unlawful attack on nurses, teachers, first responders, and public service workers across the country. Congress created the Public Service Loan Forgiveness (PSLF) program because it is important for our democracy that we support the people who do the hard work to serve our communities. This new rule is a craven attempt to usurp the legislature’s authority in an unconstitutional power grab aimed at punishing people with political views different than the Administration’s. In our democracy, the president does not have the authority to overrule Congress.
“That’s why we will soon see the Trump-Vance Administration in court.”
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About Protect Borrowers
Protect Borrowers (formerly Student Borrower Protection Center) is a nonprofit organization led by a team of experts, lawyers, and advocates fighting to build an economy where debt doesn’t limit opportunity. We investigate financial abuses, take predatory companies to court, and push for policies to protect working people from debt traps. We aim to deliver immediate relief to families while building power, driving systemic change, and fighting for racial and economic justice.
Learn more at protectborrowers.org or follow us on social @BorrowerJustice.
About Democracy Forward
Democracy Forward Foundation (Democracy Forward) is a national legal organization that advances democracy and social progress through litigation, policy, public education, and regulatory engagement.
Learn more at democracyforward.org