Protect Public Service: Why New Rules Threaten a Vital Loan Forgiveness Program

For years, the Public Service Loan Forgiveness (PSLF) program has been a lifeline, empowering countless lawyers, advocates, and nonprofit professionals to dedicate their careers to public service without being crushed by student debt. At New York Lawyers for the Public Interest (NYLPI), PSLF allows our team to champion justice for marginalized communities in areas ranging from racial equity to disability rights.

Now, a proposed federal rule would allow the Department of Education to disqualify nonprofit employers from PSLF eligibility based on a vague, subjective determination that an organization has a "substantial illegal purpose." This language would undermine and politicize the PSLF program, risking the exclusion of organizations that work on issues such as immigration, discrimination, protest, and transgender identity.

This is not just an administrative tweak; it would chill public-interest work, deter talented people from entering or staying in these roles, and make it harder for organizations like ours to recruit and retain staff. The proposal would also give the Department broad discretion without meaningful avenues for those affected to challenge decisions: employee borrowers cannot contest an employer-eligibility finding, and a disqualified employer can only regain eligibility after ten years or by submitting a Department-approved compliance plan, with no appeal process available.

In our formal comment to the Department, we urged withdrawal of this proposal. PSLF must remain a reliable and inclusive pathway for public servants. We will continue to fight to ensure that our legal and advocacy work, along with the work of countless others, is protected from political interference. Read our full comment here.

An ad hoc committee of 64 organizations that promote and protect civil and human rights for all people in the United States wrote a letter to the Department of Education. Read their full comment here.

A second group of over 70 legal services organizations that serve low-income people across the country submitted a letter, as well. Read their full comment here.

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