Washington, D.C., Nov. 4 — Four non-profit public-interest organizations filed a lawsuit today to challenge a new rule issued by the U.S. Department of Education (ED) that threatens to disqualify certain employers from eligibility for the federal Public Service Loan Forgiveness (PSLF) program. The plaintiffs in the case — Robert F. Kennedy Human Rights, the American Immigration Council, The Door – A Center of Alternatives, Inc., and the League of United Latin American Citizens (LULAC) — are represented by Student Defense and Public Citizen Litigation Group.
ED established the new rule in response to an Executive Order issued by President Donald Trump. Finalized on October 31, the rule allows ED to disqualify employers from the PSLF program that are deemed to have a “substantial illegal purpose” by the Secretary of Education. Under the rule, ED will decide for itself whether this standard is met, based on its unilateral determination that an organization has engaged in activities disfavored by the administration concerning immigration, gender affirming care, and purported discrimination, along with other areas. The rule’s vague and overbroad language permits arbitrary enforcement against mission-driven organizations doing work or expressing opinions opposed by the government.
ED’s new regulation threatens to harm many of the 2.5 million federal student loan borrowers who have collectively worked more than 100 million months in public service jobs in order to qualify for PSLF forgiveness.
“The Rule will make it more difficult for employers in certain fields, such as advocacy on behalf of immigrants, to recruit and train employees, and will chill politically disfavored but legal activities by PSLF employers.” the complaint states. “The Rule is contrary to the PSLF statute, exceeds the Department’s regulatory authority, and violates the constitutional rights of nonprofits whose employees are statutorily eligible for PSLF.”
PSLF was created in 2007 to encourage students to pursue public service careers after graduation. The program offers federal student loan forgiveness to those who spend ten years repaying such loans while working full time in a public service job. The statute creating the program provides a clear list of qualifying employers, which include military service, emergency management, public health, government, public safety, law enforcement, early childhood education and library science, and all 501(c)(3) organizations, among others.
The lawsuit asks the court to declare the new rule unlawful and to declare that ED lacks the legal authority to change the statutory criteria for PSLF.
“Congress created PSLF to support those who work in public service jobs, not to let the President play favorites. The Trump administration should not be allowed to use a program designed to reward public service as a weapon against its political enemies,” said Cormac Early, attorney at Public Citizen Litigation Group and lead counsel on the case.
“Congress made a promise that if Americans give back to the country, the country will give back to them. Now the Trump Administration wants the power to renege on that promise if they disagree with your employer’s mission or perceived political views,” said Student Defense President Aaron Ament. “This new, unlawful rule is a slap in the face to the millions of first responders, health workers, teachers, and other public servants who believed the government could be trusted to keep its word.”
“The Trump Administration’s attack on the Public Service Loan Forgiveness program strikes at the heart of civic space and public service. By targeting individuals who choose to work in nonprofits defending the human rights of immigrants and advancing diversity, inclusion, and transgender rights, this rule seeks to silence voices for equity and justice while weakening these organizations’ ability to recruit the next generation of leaders,” said Kerry Kennedy, President, RFK Human Rights.
“Public Service Loan Forgiveness was a clear commitment from the government to individuals who have dedicated themselves to public service,” said Jorge Loweree, Managing Director of Programs and Strategy at the American Immigration Council. “This regulation weaponizes that commitment. No one should be forced to choose between supporting their neighbors and securing the financial stability they were promised.”
“Latino families across the country rely on mission-driven nonprofits for immigration assistance, health care, and programs that support underserved young adults. This rule hands any administration a blank check to punish nonprofits it dislikes and jeopardizes the future of the teachers, nurses, veterans, and legal advocates who serve the public every day,” said Juan Proaño, CEO of the LULAC Institute. “LULAC Institute joined this case to defend the statute, protect our workforce, and ensure Latino borrowers are never forced to choose between serving their community and keeping a promise the government already made.”
Read the complaint here.
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About Robert F. Kennedy Human Rights:
RFK Human Rights is a nonpartisan, not-for-profit organization, founded in 1968, that works to realize Robert F. Kennedy’s dream of a more just and peaceful world. In partnership with local activists, RFKHR advocates for key human rights issues—championing change makers and pursuing strategic litigation in the U.S. and around the globe. And to ensure change that lasts, RFKHR fosters a social-good approach to business and investment and educates the next generation of leaders about human rights and social justice.
About the American Immigration Council:
The American Immigration Council works to strengthen America by shaping how America thinks about and acts towards immigrants and immigration. The Council employs four coordinated approaches to advance change—litigation, research, legislative and administrative advocacy, and communications. Follow the latest Council news and information on LinkedIn, BlueSky, Instagram and YouTube.
About The Door – A Center of Alternatives
For over 50 years, The Door has been a trusted place for young people between 12 and 24. All are welcome as they are, to be themselves, address challenges, and access services when and how they need them. With our roots in the heart of New York City and a presence across the boroughs, The Door offers comprehensive programs and services, including mental health counseling, health and nutrition assistance, legal services, housing support, arts, education, and career guidance. At The Door, everything is free and everyone is welcome.
The Door’s on-site charter high school, Broome Street Academy, serves 300 students per year from across all five boroughs, with reserved seats for students who are transitionally housed or in foster care.
About The LULAC Institute
The LULAC Institute is the nonprofit arm of The League of United Latin American Citizens Institute (LULAC), the nation’s oldest and largest Latino civil rights organization. Founded in 1929, LULAC is committed to advancing the rights and opportunities of Latino Americans through advocacy, community building, and education. With a growing network of councils nationwide, LULAC remains steadfast in its mission to protect and empower millions of Latinos, contributing daily to America’s prosperity. For more information about LULAC and its initiatives, please visit www.LULAC.org.
About Public Citizen Litigation Group
Public Citizen Litigation Group is the litigating arm of the nonprofit consumer advocacy organization Public Citizen. For more than 50 years, the Litigation Group has worked to advance the interests of consumers, workers, and the public, and to hold the government and corporations accountable to the people. Read more at www.citizen.org/litigation.
About Student Defense
The National Student Legal Defense Network (“Student Defense”) is a non-profit organization that works, through litigation and advocacy, to advance students’ rights to educational opportunity and to ensure that higher education provides a launching point for economic mobility.
Media Contacts:
RFK Human Rights
Amy Zelvin Reid
American Immigration Council
Elyssa Pachico
The Door – A Center of Alternatives
Kirkley Strand
LULAC
David Cruz
Public Citizen Litigation Group
Omar Baddar
Student Defense
Kerry Leary
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