The Department of Justice has ended its appeal of a federal judge’s ruling blocking the Trump administration’s attempt to overhaul the Public Service Loan Forgiveness (PSLF) program, according to court filings.
The DOJ filed joint agreements Wednesday to drop two pending appeals, each in a single sentence, stating that each party would bear its own legal fees. No further explanation was provided by federal officials regarding the decision.
The PSLF program, established to encourage careers in public service, forgives student loans for qualified employees after 10 years of payments if they work for government organizations, nonprofits, or public institutions such as schools and hospitals. The Trump administration had sought to revise the program last fall by granting the Education Secretary authority to disqualify employers from eligibility if their activities were deemed to have a “substantial illegal purpose.”
The proposed rule change, set to take effect in July, would have allowed the secretary to remove organizations from the program if they supported undocumented immigrants, provided gender-affirming care to minors, or engaged in diversity, equity, and inclusion initiatives. A federal judge in Massachusetts vacated the rule in June, ruling that the Education Department had overstepped its authority and potentially violated the First Amendment.
The administration’s legal challenge was opposed by advocacy groups, including Student Defense, which argued the changes amounted to political retribution. In a statement, Dan Zibel, an attorney for the group, called the effort “anti-democratic and unlawful.”
The PSLF program has canceled loans for more than 1 million Americans since its inception, according to federal data. The administration’s attempt to alter the program was paused before implementation following the judge’s ruling, which cited concerns over executive overreach and vague language in the proposed rule.
The DOJ’s decision to drop the appeals leaves the original PSLF framework intact, though future policy changes remain possible under subsequent administrations.