Federal Judges Block Trump PSLF Restrictions Hours Before July 1 Take-Effect Date
- U.S. District Judges Myong J. Joun (Massachusetts) and Amir H. Ali (D.C.) issued separate rulings on June 30 striking down the Trump administration's rule that would have let the Education Department disqualify employers from the Public Service Loan Forgiveness program over 'substantial illegal purpose' activities such as DEI programs, gender-affirming care, or immigration advocacy (NYT).
- The courts declared the regulation 'contrary to law,' beyond statutory authority, and a First Amendment violation, preventing roughly a million public servants from losing forgiveness eligibility on July 1.
- The decision comes amid broader July 1 student-loan changes, including the phaseout of income-driven plans like SAVE, leaving borrower payment outlooks in flux.