Trump administration drops appeal over Public Service Loan Forgiveness program

The Trump administration has dropped its appeal regarding a legal challenge to the Public Service Loan Forgiveness (PSLF) program. This decision leaves in place a U.S. District Court for the District of Massachusetts ruling that vacated a Department of Education rule.

The contested rule would have allowed the administration to strip PSLF eligibility from employees of government and nonprofit organizations if the administration deemed those organizations to have a “substantial illegal purpose.” The rule was challenged by a coalition of 22 attorneys general, including Michigan Attorney General Dana Nessel.

By conceding the case, the administration ensures the program remains intact as established by Congress in 2007. The PSLF program is designed to forgive the remaining federal student loan balances of borrowers who work in public service and complete 10 years of qualifying payments.