WASHINGTON (AP) β Two federal judges struck down a Trump administration overhaul of the Public Service Loan Forgiveness (PSLF) program on Tuesday, June 30, 2026, ruling in separate cases that the changes risked undermining the program's purpose. The decisions were in favor of advocates who argued the new rules would make it harder for public servants to qualify for loan forgiveness.
The judges, ruling in cases brought by the American Federation of Teachers and other groups, found that the Department of Education's 2025 regulations violated the Higher Education Act by imposing stricter eligibility requirements and reducing the scope of qualifying employment. The rulings restore the original program rules, which allow forgiveness after 10 years of qualifying payments for borrowers working in government or non-profit sectors.
According to the court documents, the judges determined that the Trump administration's changes were 'arbitrary and capricious' and failed to consider the program's intent to encourage public service. The Department of Education has not yet commented on whether it will appeal the decisions.
The PSLF program, established in 2007, has been a subject of controversy, with many borrowers facing denials due to complex eligibility criteria. The recent rulings are seen as a victory for borrowers, though the program's future remains uncertain pending potential appeals.
