ED Rulemaking on PSLF Ends Without Consensus
Published July 14, 2025
By AACOM Government Relations
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- Negotiators met June 30–July 2, 2025, but failed to agree on regulatory changes to the Public Service Loan Forgiveness (PSLF) program.
- The draft regulatory language released in advance would amend the PSLF regulations to ensure that the definition of a qualifying employer excludes organizations that engage in activities that have a “substantial illegal purpose,” in accordance with a March 2025 executive order (EO) issued by President Trump. Employees of newly disqualified organizations, according to the draft regulations, would lose PSLF eligibility and would need to switch employers to continue progressing toward loan forgiveness.
- With no consensus reached, ED is not bound by the committee’s input and will move forward with its own draft regulations, which will be subject to a public comment period before finalization.
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