Court Declares Unlawful the Department of Education’s Rule Restricting Public Service Loan Forgiveness Eligibility

Summary

Washington, D.C. — The Trump Administration’s attempt to politicize the Public Service Loan Forgiveness program is unlawful, a federal judge ruled today. The U.S. The ruling was in response to a lawsuit filed in November 2025 by Public Citizen Litigation Group and Student Defense on behalf of 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 ED to disqualify an employer from the PSLF program if the Secretary of Education determined that the organization had a “substantial illegal purpose.” Under the rule, ED gave itself the unilateral power to decide whether an organization had such a purpose, based on the organization’s participation in activities that the current administration disapproves of concerning immigration, discrimination, gender-affirming care, and other matters. 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.” said Cormac Early, attorney at Public Citizen Litigation Group and lead counsel on the case. “Today’s decision is a victory for student loan borrowers, for the First Amendment, and for the rule of law,” said 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. Today’s decision is an important victory, and an affirmation of what Congress decided almost twenty years ago – public servants should be supported.” “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. This ruling affirms that the government cannot rewrite the terms of that promise for political reasons,” said Jorge Loweree, Managing Director of Programs and Strategy at the American Immigration Council. “Today’s decision is a victory for public service professionals and the communities they 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 American Immigration Council works to strengthen America by shaping how America thinks about and acts towards immigrants and immigration. The Supreme Court ruled today that the Trump administration could turn back asylum seekers at… Ohio, June 18, 2026 – New research from the American Immigration Council underscores the crucial role immigrants play… New research from the American Immigration Council underscores the crucial role that immig