Student Loan Forgiveness Is Safe For Now After Two Big Court Losses For Trump Administration
The Education Department cannot proceed with new regulations that could have cut off scores of borrowers from student loan forgiveness, said two courts on Tuesday. The long-awaited dual rulings over the Public Service Loan Forgiveness program, or PSLF, are a major win for borrowers, and a huge loss for the Trump administration. And student loans can now continue to be forgiven under the program.
“This is an important win for those who serve the public and for our democracy that proves, yet again, that the people and their lawyers are capable of reigning in the Trump-Vance administration’s lawlessness,” said Skye Perryman, President and CEO of Democracy Forward, one of the organizations that challenged the new rules, in a statement on Tuesday. “PSLF is a bipartisan promise to those who choose to work in public service, regardless of viewpoint, and the administration’s attempt to hold this congressionally-mandated program hostage was not just unlawful, but part of an alarming broader assault on those committed to public service. Democracy Forward is honored to work with this large coalition and grateful for their bravery in holding this administration accountable.”
The regulations, if enacted, would have given the department the power to unilaterally disqualify organizations from participating in the Public Service Loan Forgiveness program if they engaged in certain forms of disfavored activities. PSLF allows borrowers to get their student loans forgiven after making payments for at least 10 years while working in eligible nonprofit or public sector employment.
But the court rulings, while hugely significant, are not necessarily the end of the legal battle over student loan forgiveness. Here’s what the PSLF ruling means, and what borrowers with student loans enrolled in the program should know.
Trump Administration Sought To Cut Off Organizations From Student Loan Forgiveness
The Education Department’s new PSLF regulations, which were created to........
