Trump administration drops appeals to change student loan forgiveness rules

The Trump administration has dropped two appeals challenging court decisions that blocked changes to the Public Service Loan Forgiveness (PSLF) program, WRAL reported. The program forgives federal student loans for public service workers after 10 years of qualifying payments.

The administration had sought to exclude employees of certain nonprofit organizations from the program if their work was deemed to have a “substantial illegal purpose,” a rule that could have affected those working in schools, public hospitals, and legal aid groups, according to The Epoch Times.

Federal judges in Massachusetts and Washington, D.C., ruled against the administration’s changes, finding that the Education Department overstepped its authority and risked violating free speech protections. The rulings came after lawsuits from states and nonprofit coalitions.

The Department of Justice did not provide an explanation for dropping the appeals, but advocates praised the decision as a victory for public service workers. The PSLF program was created to encourage careers in public service by forgiving student loan debt.

The Trump administration had issued an executive order directing the Education Department to revise eligibility rules for the PSLF program, aiming to exclude organizations involved in activities such as aiding illegal immigration or supporting terrorism. However, these changes were blocked by the courts before they could take effect.

With the appeals dropped, the current PSLF program rules remain in place, continuing to benefit over one million Americans who work in government and nonprofit sectors.