Overview

• The Education Department’s preliminary PSLF rule, published August 18, is accepting public comments through September 17 at 11:59 p.m. ET.
• The proposal would stop borrowers from earning PSLF credit for months worked after their employer is deemed ineligible for breaching law or public policy, using employer identification numbers to apply the designation.
• Critics highlight language on a “substantial illegal purpose,” warning it could sweep in hospitals, municipalities and nonprofits based on contested policy issues.
• On September 10, the American Federation of Teachers filed a class action alleging the department and Secretary Linda McMahon are unlawfully blocking loan forgiveness across PSLF and multiple income-driven repayment plans.
• Reporting points to staffing cuts and processing delays at the department, while the program’s history of 2% pre‑pandemic approvals and temporary waiver gains underscores concerns about workforce and community impacts.