The U.S. District Court for the District of Columbia has ruled against a Department of Education rule that restricted eligibility for the Public Service Loan Forgiveness program, deeming it unlawful.
Washington, D.C. — A federal judge has ruled that the Trump Administration’s efforts to politicize the Public Service Loan Forgiveness (PSLF) program are unlawful. The U.S. District Court for the District of Columbia struck down a rule issued by the U.S. Department of Education (ED) that threatened to disqualify certain employers from participating in the PSLF program.
The ruling came in response to a lawsuit filed in November 2025 by the Public Citizen Litigation Group and Student Defense on behalf of several organizations, including the Robert & Ethel Kennedy Human Rights Center, the American Immigration Council, The Door – A Center of Alternatives, Inc., and the League of United Latin American Citizens (LULAC).
The lawsuit challenged a rule finalized in October 2025 that allowed the ED to disqualify an employer from the PSLF program if the Secretary of Education determined that the organization had a “substantial illegal purpose.” This rule granted the ED unilateral power to decide whether an organization had such a purpose, based on its participation in activities that the current administration disapproves of, including issues related to immigration, discrimination, and gender-affirming care.
According to the plaintiffs, the rule violated the governing statutes of the PSLF program and allowed for arbitrary enforcement against mission-driven organizations engaged in work or expressing opinions that the government opposes. The organizations sought a court declaration that the new rule was unlawful, arguing that the ED lacked the legal authority to alter the statutory criteria for PSLF.
“The court’s ruling is a major victory for those who work in the public interest and the communities they serve,” said Cormac Early, an attorney at Public Citizen Litigation Group and lead counsel on the case. “People who devote their careers to public service and non-profit work deserve access to loan forgiveness on the terms Congress promised, without the threat of retribution from the Trump administration.”
“Today’s decision is a victory for student loan borrowers, for the First Amendment, and for the rule of law,” added Aaron Ament, President of Student Defense. “Public servants should not have to worry that the federal government will punish them because of their employer’s mission or perceived political views. We’re relieved that the court ruled our government must follow through on its promise of loan forgiveness for the millions of teachers, military personnel, and other public servants who have dedicated their lives to making our country a better place, regardless of ED’s opinions.”
Kerry Kennedy, president of the Kennedy Human Rights Center, emphasized the broader implications of the ruling. “The Trump administration’s baseless and blatant attempt to revoke Congressionally appointed benefits wasn’t just a threat to our nonprofit employees,” she stated. “It was a threat to everyone we serve, to the women, men, and children who rely on our organization to protect their most fundamental human rights. Today’s decision is an important victory and an affirmation of what Congress decided almost twenty years ago — public servants should be supported.”
Jorge Loweree, Managing Director of Programs and Strategy at the American Immigration Council, noted the ruling’s significance for public servants. “Today’s decision protects public servants from a rule that would have punished them for simply working to support immigrant families and other underserved communities targeted by this administration. Public Service Loan Forgiveness was created to encourage people to work to help underserved communities and populations. This ruling affirms that the government cannot rewrite the terms of that promise for political reasons,” he said.
Kelsey Louie, CEO of The Door – A Center of Alternatives, Inc., expressed gratitude for the court’s decision. “Today’s decision is a victory for every public servant who chose to dedicate their career to lifting up their community, and for the Latino families those public servants serve. The Department of Education does not get to rewrite the promise Congress made, and it certainly does not get to punish organizations like ours for the advocacy and civil rights work that is at the heart of our mission,” said Juan Proaño, CEO of the LULAC Institute.
The ruling has been welcomed by various stakeholders in the public service sector, who view it as a restoration of the original intent of the PSLF program. The decision ensures that public servants can continue their vital work without the fear of losing loan forgiveness due to political motivations.
For more information about the ruling and its implications, please refer to the original complaint and the court’s decision.
According to American Immigration Council, this ruling marks a significant step in protecting the rights of public service professionals and ensuring that they can continue to serve their communities effectively.