The PSLF program was created in 2007, promising forgiveness of the balance of federal student-loan debt after ten years of public service. Recently, the Department of Education (by Executive Order) has threatened to revoke this promise to employees in cities or organizations that engage in activities with a “substantial illegal purpose” as deemed by the education secretary. As it stands today, nearly half of all people who have received PSLF forgiveness work in education.
Could this impact you? Anything is possible, but it is not likely at this time. This Executive Order was intended to impact nonprofits, specifically ones involved in immigration support and those aimed at advancing diversity, equity, and inclusion initiatives. However, the vague definition of “substantial illegal purpose” has caused some to worry about the widespread implications on school districts, particularly ones that provide services or support policies protecting LGBTQ youth.
This November, the NEA joined in on a lawsuit against the Department of Education to preserve the PSLF program and invalidate the recent eligibility rule changes. This will now play out in the court system and potentially impact the July 1, 2026 effective date of the new rule.
As always, if you have any questions about PSLF litigation or how this may impact you, please feel free to reach out to your UniServ Representative. NEA member benefits also provides you access to the SAVI student loan navigation services.
I hope you enjoy your well-deserved Christmas break.
Speak Up For Students and Public Schools
