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Public Service Loan Forgiveness overhaul dropped by Trump administration. Here's what to know.
CBS News • • nation
Key Points:
- The Trump administration has ceased its efforts to overhaul the Public Service Loan Forgiveness (PLSF) program by dropping its appeal of a federal court ruling that found the proposed changes unlawful.
- The proposed rule, finalized in October 2025, would have barred employees from loan forgiveness if their employers engaged in illegal activities such as terrorism, immigration violations, or certain medical practices involving children.
- Multiple nonprofits and municipalities challenged the rule, arguing it gave the Department of Education excessive power and violated First Amendment protections; courts vacated the rule before it could take effect.
- Advocates and nonprofit leaders praised the administration's decision to drop the appeal, emphasizing that PLSF will continue as originally designed, providing loan relief to millions of public servants.
- The PLSF program enables eligible public service workers to have their federal student loans forgiven after making 120 qualifying monthly payments over ten years.
