Washington, D.C. — The Trump Administration’s attempt to politicize the Public Service Loan Forgiveness program is unlawful, a federal judge ruled today.
The U.S. District Court for the District of Columbia struck down a rule issued by the U.S. Department of Education (ED) that threatened to disqualify certain employers from eligibility for PSLF.
The ruling was in response to a lawsuit filed in November 2025 by Public Citizen Litigation Group and Student Defense on behalf of the Robert & Ethel Kennedy Human Rights Center, the American Immigration Council, The Door – A Center of Alternatives, Inc., and the League of United Latin American Citizens (LULAC).
The lawsuit challenged a rule finalized in October 2025 that allowed ED to disqualify an employer from the PSLF program if the Secretary of Education determined that the organization had a “substantial illegal purpose.” Under the rule, ED gave itself the unilateral power to decide whether an organization had such a purpose, based on the organization’s participation in activities that the current administration disapproves of concerning immigration, discrimination, gender-affirming care, and other matters.
As the plaintiffs explained in the motion granted today, the rule violated the state governing the PSLF program and allowed arbitrary enforcement against mission-driven organizations doing work or expressing opinions that the government opposes. The organizations asked the court to declare the new rule unlawful because, among other things, ED lacks the legal authority to change the statutory criteria for PSLF.
“The court’s ruling is a major victory for those who work in the public interest and the communities they serve. People who devote their careers to public service and non-profit work deserve access to loan forgiveness on the terms Congress promised, without the threat of retribution from the Trump administration.” said Cormac Early, attorney at Public Citizen Litigation Group and lead counsel on the case.
“Today’s decision is a victory for student loan borrowers, for the First Amendment, and for the rule of law,” said Aaron Ament, President of Student Defense. “Public servants should not have to worry that the federal government will punish them because of their employer’s mission or perceived political views. We’re relieved that the court ruled our government must follow through on its promise of loan forgiveness for the millions of teachers, military personnel and other public servants who have dedicated their lives to making our country a better place, regardless of ED’s opinions.”
“The Trump administration’s baseless and blatant attempt to revoke Congressionally appointed benefits wasn’t just a threat to our nonprofit employees,” said Kerry Kennedy, president of the Kennedy Human Rights Center. “It was a threat to everyone we serve, to the women, men, and children who rely on our organization to protect their most fundamental human rights. Today’s decision is an important victory, and an affirmation of what Congress decided almost twenty years ago – public servants should be supported.”
“Today’s decision protects public servants from a rule that would have punished them for simply working to support immigrant families and other underserved communities targeted by this administration. Public Service Loan Forgiveness was created to encourage people to work to help underserved communities and populations. This ruling affirms that the government cannot rewrite the terms of that promise for political reasons,” said Jorge Loweree, Managing Director of Programs and Strategy at the American Immigration Council.
“Today’s decision is a victory for public service professionals and the communities they serve. Public Service Loan Forgiveness was created to encourage educators, counselors, social workers, attorneys, and other professionals to dedicate their careers to serving others and strengthening their communities. For organizations like The Door, that means being able to attract and retain the talented staff who help young people access opportunity, overcome challenges, and build stable futures. We are grateful that the court upheld that commitment,” said Kelsey Louie, CEO of The Door – A Center of Alternatives, Inc.
“This ruling is a victory for every public servant who chose to dedicate their career to lifting up their community, and for the Latino families those public servants serve. The Department of Education does not get to rewrite the promise Congress made, and it certainly does not get to punish organizations like ours for the advocacy and civil rights work that is at the heart of our mission,” said Juan Proaño, CEO of the LULAC Institute.
Read the original complaint here.
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About Robert & Ethel Kennedy Human Rights Center:
The Robert & Ethel Kennedy Human Rights Center is a nonpartisan, not-for-profit organization that works across the courtroom, the boardroom, and the classroom to build a more just and peaceful world. Inspired by the legacies of Senator Robert and Ethel Kennedy, we work with international and domestic partners to protect fundamental human rights. We pursue strategic litigation to hold governments accountable at home and around the world; foster a social good approach to business; and train the next generation of changemakers through our human rights education programs.
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, Inc.
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 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 https://ift.tt/FNOLC9Y.
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.
The post Court Declares Unlawful the Department of Education’s Rule Restricting Public Service Loan Forgiveness Eligibility appeared first on American Immigration Council.
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