Trump administration drops two appeals over Public Service Loan Forgiveness changes
In short
The Trump administration dropped two appeals on Wednesday of June rulings that blocked its plan to change which employers qualify for Public Service Loan Forgiveness. Federal officials gave no explanation. Another appeal in a separate PSLF lawsuit is still pending, Business Insider reported.
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The Trump administration moved on Wednesday to end its legal fight over changes to the Public Service Loan Forgiveness (PSLF) program. The Department of Justice dropped two appeals in single-sentence joint agreements, which stipulated that each side would pay its own fees, according to The Seattle Times and The Boston Globe. Those outlets said federal officials provided no explanation. [ 3 , 4 ]
Business Insider reported that the appeals concerned a June ruling that had blocked the administration's plan to narrow eligibility for the program. With the appeal set to be dismissed, borrowers will not face any immediate changes to PSLF, it said. Another appeal in a separate PSLF lawsuit is still pending. The Education Department did not immediately respond to a request for comment from Business Insider. [ 1 ]
Dan Zibel of Student Defense said in a statement: "The Trump administration's attempt to weaponize public service loan forgiveness against organizations it disagrees with was anti-democratic and unlawful from the start. This is a significant victory for millions of Americans who have dedicated their careers to public service." Business Insider described him as chief counsel at Student Defense; the Seattle Times and Boston Globe called him an attorney for the group. [ 1 , 3 , 4 ]
The program forgives loans for qualified employees at government and nonprofit employers after 10 years of payments. The Seattle Times and Boston Globe said it was designed to make jobs in government, public schools, fire and police departments, public hospitals and nonprofits more attractive. According to those outlets, the administration wrote a new rule last fall to empower Education Secretary Linda McMahon to remove employers from the program if she decides their work has a "substantial illegal purpose." They described the rule as vaguely phrased and targeted at employers who support undocumented immigrants or transgender youth. [ 3 , 4 ]
Business Insider said the Education Department intended to implement the plan on July 1 and listed actions such as assisting with gender-affirming care or "acts of terrorism" as grounds for exclusion. Undersecretary of Education Nicholas Kent had said the rule was intended to "ensure federal benefits go to our Nation's teachers, first responders, and civil servants who tirelessly serve their communities." [ 1 ]
Just before the changes were set to take effect in July, U.S. District Judge Myong Joun in Massachusetts vacated them, saying they overstepped the agency's power and threatened to violate First Amendment protections for free speech, the Seattle Times and Boston Globe reported. Business Insider said the administration appealed at the end of August, following lawsuits filed by advocacy groups and nonprofits, including Student Defense, which argued that the education secretary lacked the authority to make the changes. [ 1 , 3 , 4 ]
Why it matters
With the appeals set to be dismissed, borrowers will not face any immediate changes to the program, according to Business Insider. Advocates described the outcome as a victory for public-service workers, while the administration gave no reason for its move.
Key facts
- On Wednesday the Trump administration dropped two appeals of June rulings that blocked its changes to Public Service Loan Forgiveness (PSLF). [ 1 , 3 , 4 ]
- The appeals were dropped in single-sentence joint agreements stating that each side would pay its own fees. [ 3 , 4 ]
- U.S. District Judge Myong Joun in Massachusetts vacated the Education Department's changes, saying they overstepped the agency's power and threatened to violate First Amendment free speech protections. [ 3 , 4 ]
- The rule would have let Education Secretary Linda McMahon remove employers from the program if she decided their work had a "substantial illegal purpose." [ 3 , 4 ]
- Another appeal in a separate PSLF lawsuit is still pending. [ 1 ]
- PSLF forgives loans of qualified government and nonprofit workers after 10 years of payments. [ 1 , 3 , 4 ]
Confirmed by several sources
- The administration dropped two appeals on Wednesday of June rulings against its plan to change PSLF eligibility. [ 1 , 3 , 4 ]
- Dan Zibel of Student Defense called the administration's attempt to use the program against organizations it disagrees with "anti-democratic and unlawful from the start." [ 1 , 3 , 4 ]
- The changes were due to take effect in July and were blocked by a court ruling. [ 1 , 3 , 4 ]
Still unclear
- Why the administration dropped the appeals. The Seattle Times and The Boston Globe said federal officials provided no explanation; Business Insider said the Education Department did not immediately respond to a request for comment.
- The outcome of the remaining appeal in a separate PSLF lawsuit. Business Insider said it is still pending; the other documents do not mention it.