Public Service Loan Forgiveness overhaul dropped, filing shows

Advocates for student loan borrowers said the move will benefit workers who dedicate themselves to public service. The Trump administration has halted its efforts to overhaul the Public Service Loan Forgiveness program, ending a plan that could have blocked some U.S. workers from tapping the popular lending program. In a filing on Wednesday, the Trump administration said it was dropping its appeal of a June 30 federal court ruling that found the overhaul unlawful, without providing an explanation for its decision. Advocates for student borrowers hailed the step. Dan Zibel, chief counsel of the advocacy group Student Borrowers, called it a "significant victory for millions of Americans who have dedicated their careers to public service." The proposed rule changes to the federal Public Service Loan Forgiveness (PLSF) program, originally proposed in August 2025, would have prohibited people from participating if their employer engaged in certain illegal activities.

The proposed revamp said that employees who work for organizations that support terrorism, violate immigration laws or are involved in what the rule described as the "chemical and surgical castration or mutilation of children" would be barred. The Department of Education didn't immediately respond to a request for comment. The PLSF is aimed at people who work for government agencies, public schools, fire and police departments, public hospitals, and nonprofits. The idea is