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  • Washington Highlights

    Federal Court Blocks PSLF Employer Eligibility Restrictions

    Contacts

    Devan O'Toole, Legislative Analyst
    Kristen Earle, Manager, Student Financial Services
    For Media Inquiries

    On June 30, a U.S. federal judge blocked the Department of Education’s final rule restricting Public Service Loan Forgiveness (PSLF) eligibility for employers engaged in activities deemed “substantially illegal,” preventing the rule from taking effect on July 1. The regulation would have disqualified certain employers from PSLF eligibility and excluded some borrower payments from counting toward loan forgiveness [refer to Washington Highlights, Oct. 31, 2025]. 

    In comments submitted on the proposed rule on Sept. 17, 2025, the AAMC highlighted PSLF’s importance in supporting the physician workforce and access to care in underserved communities. As a result of the court’s decision, PSLF employer eligibility requirements remain unchanged.