THE DAILY BS: HOW MUCH CAN YOU HANDLE?
SPARE ME THE BS (I’ve got things to do).
- The Justice Department moved to dismiss two appeals defending restrictions on Public Service Loan Forgiveness.
- The blocked rule would let the Education Department exclude employers deemed to have a “substantial illegal purpose.”
- Existing eligibility rules remain in place; a third appeal was still pending Thursday.
LAY IT ON ME (I’ve got time).
The Trump administration has abandoned two appeals in its fight to tighten Public Service Loan Forgiveness, leaving its disputed employer restrictions blocked and giving nonprofit organizations challenging the policy something Washington rarely distributes efficiently: a clear win.
The Justice Department moved Wednesday to dismiss the appeals after federal courts struck down the rule in June. Officials offered no public explanation for the retreat. After months of regulatory maneuvering, the government’s exit paperwork was considerably shorter than its entrance paperwork.
A third appeal remained pending Thursday, so the entire legal fight has not formally disappeared. But the restrictions never took effect, and the existing program continues.
The administration’s rule, finalized last fall, would have empowered Education Secretary Linda McMahon to disqualify employers whose activities met a “substantial illegal purpose” standard. Employees of excluded organizations could consequently lose access to forgiveness through that employment.
The political collision centered on activities involving immigration, services for transgender minors and other disputed conduct. The administration said the changes would protect taxpayer money and prevent federal benefits from subsidizing unlawful activity.
The organizations suing over the rule said their work was lawful and argued that the department was exceeding its authority while threatening their First Amendment rights. Public service, it turned out, was about to require a lengthy argument over who qualified to define the public.
Two district courts rejected the restrictions before their planned July 1 implementation. The administration appealed, then this week began withdrawing those challenges.
Student Defense chief counsel Dan Zibel welcomed the development: “We always believed that we had a strong case and that the rule was illegal from the outset.”
The department had previously defended the policy as necessary to protect legitimate public servants. Undersecretary Nicholas Kent said it would “ensure federal benefits go to our Nation’s teachers, first responders, and civil servants who tirelessly serve their communities.”
For qualifying borrowers, PSLF still requires 120 qualifying monthly payments while meeting the program’s employment and other requirements. Wednesday’s filings preserve the existing route to forgiveness rather than creating a new cancellation program.
DBS WIRE SOURCES (I’ve got all day).
- Associated Press: Trump administration drops legal fight to overhaul student loan forgiveness program
- Inside Higher Ed: Rule limiting PSLF beneficiaries dead for now
- Business Insider: Trump drops two appeals seeking to narrow forgiveness for public servants
- Forbes: Two courts block the administration’s PSLF restrictions
- Federal Student Aid: Public Service Loan Forgiveness requirements
