The Department of Education published a final rule on Oct. 30 revising the definition of qualifying Public Service Loan Forgiveness (PSLF) employers to exclude organizations engaged in activities that violate federal or state law or conflict with established public policy. The rule would establish a monitoring process to evaluate employer eligibility under this standard.
The rule defines a “substantial illegal purpose” to include activities such as “aiding or abetting,” “terrorism,” “illegal discrimination,” and “chemical and surgical castration or mutilation,” which encompasses certain gender-affirming medical interventions for minors. Payments made after an employer is found to engage in such activities would no longer count toward PSLF; there would be no retroactive penalties.
Employers may challenge determinations about their eligibility and can regain qualifying status after ten years or sooner if they complete a corrective action plan approved by the department.
After the department published a notice of proposed rulemaking on Aug. 18 in the Federal Register, the AAMC submitted a Sept. 17 letter to the department opposing provisions in the proposed rule that could negatively affect medical students (PDF). The association also joined a higher education community letter (PDF) expressing concern that the department’s plan to revise the definition of qualifying employers is inconsistent with current law and congressional intent for the PSLF program [refer to Washington Highlights, Sept. 19].