Challenging the Trump Administration Over Its New PSLF Eligibility Rule
Robert F. Kennedy Center for Justice and Human Rights, the American Immigration Council, The Door — A Center of Alternatives, Inc., and the League of United Latin American Citizens Institute, Inc., v. the U.S. Department of Education
On November 4, 2025, Student Defense and Public Citizen filed a lawsuit challenging a new rule issued by the U.S. Department of Education (ED) that threatens to disqualify certain employers from eligibility for the federal Public Service Loan Forgiveness (PSLF) program.
The case was filed on behalf of Robert F. Kennedy Center for Justice and Human Rights, the American Immigration Council, The Door — A Center of Alternatives, Inc., and the League of United Latin American Citizens Institute, Inc.
ED established the new rule in response to an Executive Order issued by President Donald Trump. Finalized on October 31, the rule allows ED to disqualify employers from the PSLF program that are deemed to have a “substantial illegal purpose” by the Secretary of Education. Under the rule, ED will decide for itself whether this standard is met, based on its unilateral determination that an organization has engaged in activities disfavored by the administration concerning immigration, gender affirming care, and purported discrimination, along with other areas. The rule’s vague and over-broad language permits arbitrary enforcement against mission-driven organizations doing work or expressing opinions opposed by the government.
PSLF was created in 2007 to encourage students to pursue public service careers after graduation. The program offers federal student loan forgiveness to those who spend ten years repaying such loans while working full time in a public service job. The statute creating the program provides a clear list of qualifying employers, which include military service, emergency management, public health, government, public safety, law enforcement, early childhood education and library science, and all 501(c)(3) organizations, among others.
We want to ensure the government keeps its promise to the millions of public servants in this country: if they give back to the country, the country will give back to them.
The press release issued after this case was filed is available here.
News Coverage:
Education Department sued over controversial loan forgiveness rule | November 3, 2025 | POLITICO
States and cities challenge Trump policy overhauling public service loan forgiveness | November 3, 2025 | AP
Case Documents:
Complaint (November 4, 2025)
