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 declared the Trump Administration’s efforts to politicize the Public Service Loan Forgiveness (PSLF) program unlawful. The ruling, issued by the U.S. District Court for the District of Columbia, struck down a controversial rule from the U.S. Department of Education (ED) that threatened to disqualify certain employers from the PSLF program.
This decision comes 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, which allowed the Department of Education 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 ED the unilateral authority to assess whether an organization engaged in activities disapproved by the current administration, particularly concerning immigration, discrimination, gender-affirming care, and other sensitive issues.
The plaintiffs argued that the rule violated the governing statutes of the PSLF program and permitted arbitrary enforcement against mission-driven organizations that serve communities or express opinions contrary to the government’s stance. They contended that the Department of Education lacked the legal authority to alter the statutory criteria for PSLF eligibility.
“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.”
Aaron Ament, President of Student Defense, echoed this sentiment, stating, “Today’s decision is a victory for student loan borrowers, for the First Amendment, and for the rule of law. Public servants should not have to worry that the federal government will punish them because of their employer’s mission or perceived political views.” He expressed relief that the court upheld the promise of loan forgiveness for millions of educators, military personnel, and other public servants dedicated to improving society.
Kerry Kennedy, president of the Kennedy Human Rights Center, emphasized the broader implications of the ruling, saying, “The Trump administration’s baseless and blatant attempt to revoke Congressionally appointed benefits wasn’t just a threat to our nonprofit employees; 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.” She described the decision as an affirmation of Congress’s intent to support public servants.
Jorge Loweree, Managing Director of Programs and Strategy at the American Immigration Council, noted, “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.”
Kelsey Louie, CEO of The Door – A Center of Alternatives, Inc., remarked, “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.”
The ruling has been hailed as a significant victory for public service professionals and the communities they serve, reaffirming the original intent of the PSLF program. The court’s decision underscores the importance of protecting public servants from politically motivated restrictions that could hinder their ability to serve vulnerable populations.
For more information about the ruling and the implications for public service loan forgiveness, please refer to the original complaint and the court’s decision.
This ruling is a pivotal moment for public service workers and the organizations that support them, ensuring that the promise of loan forgiveness remains intact and accessible to those dedicated to serving their communities.
According to American Immigration Council.