PSLF Employer Eligibility Rule Challenged in Court
Key Questions
What new rule affects PSLF employer eligibility?
Effective July 1, the Education Department can disqualify employers for activities deemed to have a 'substantial illegal purpose,' potentially narrowing qualifying employers for Public Service Loan Forgiveness.
Why is there a lawsuit challenging the PSLF employer rule?
A coalition lawsuit seeks to block the rule before July 1, arguing it creates uncertainty and could force immediate changes to eligibility for borrowers nearing forgiveness.
What happens if the court blocks the new PSLF rule?
A judge's decision pending before July 1 could prevent the narrowing of qualifying employers, preserving current eligibility standards for affected borrowers.
New lawsuit challenges narrowing of qualifying employers for PSLF; new rule effective July 1 allows ED to disqualify employers for 'substantial illegal purpose'. Coalition lawsuit seeks to block; judge decision pending before July 1. Student Loan Planner video covers ATF lawsuit impacts on IDR/PSLF backlogs and 88k pending PSLF buyback applicants. Could force immediate changes to PSLF eligibility if injunction granted.