Final PSLF Rule Sparks Nationwide Legal Challenges
Published November 17, 2025
By AACOM Government Relations
Higher Education
OME Advocate
- On October 31, 2025, the Trump administration issued its final rule detailing changes to the Public Service Loan Forgiveness (PSLF) Program which granted ED expanded power to ban organizations from the program if their work is deemed to have a “substantial illegal purpose.”
- In response, the National Council of Nonprofits and Commonwealth of Massachusetts, along with several cities, labor unions and nonprofits across 22 states, filed two lawsuits against ED. Both lawsuits claim that the new rule violates both the First Amendment and the Administrative Procedure Act.
- The final rule is set to go into effect on July 1, 2026. For more information, read ED’s fact sheet and a National Association of Student Financial Aid Administrators analysis of the final rule.
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