The Department of Justice dropped two appeals on October 22, 2026 over the Trump administration's planned overhaul of the Public Service Loan Forgiveness program, which serves more than 1 million Americans. Federal judges including U.S. District Judge Myong Joun had ruled against the changes in June 2026, finding they overstepped agency power and threatened First Amendment protections.
DOJ appeals withdrawal
- ▪The Department of Justice's withdrawals of its two Public Service Loan Forgiveness program appeals came in single-sentence joint agreements in which each side agreed to pay its own legal fees
- ▪The Department of Justice dropped two appeals over the Trump administration's planned overhaul of the Public Service Loan Forgiveness program on October 21, 2026
- ▪No explanation was offered by federal officials for the Department of Justice's withdrawals of its two Public Service Loan Forgiveness appeals
Public Service Loan Forgiveness program
- ▪The Public Service Loan Forgiveness program works by forgiving the loans of qualified employees once they have made a decade's worth of payments
- ▪Dan Zibel is an attorney for the group Student Defense
- ▪The Public Service Loan Forgiveness program is used by more than 1 million Americans
- ▪The Public Service Loan Forgiveness program was created to make careers in government, public schools, fire and police departments, public hospitals and nonprofits more attractive
Proposed PSLF rule changes
- ▪The Trump administration's October 2025 proposed Public Service Loan Forgiveness rule was aimed at employers who support undocumented immigrants or transgender youth
- ▪The Trump administration's October 2025 proposed Public Service Loan Forgiveness changes were due to take effect in July 2026
- ▪Borrowers who had worked at schools, public hospitals and legal aid groups could have been affected by the Trump administration's October 2025 proposed Public Service Loan Forgiveness rule changes
- ▪The Trump administration's October 2025 proposed Public Service Loan Forgiveness rule would have allowed Education Secretary Linda McMahon to remove employers from the program if she judged their work to have a substantial illegal purpose
- ▪President Donald Trump's administration drafted a new rule for the Public Service Loan Forgiveness program in autumn 2025
Federal court rulings
- ▪U.S. District Judge Myong Joun's ruling responded to a pair of lawsuits filed by more than 20 states, together with a coalition of nonprofit groups and cities
- ▪U.S. District Judge Myong Joun said the October 2025 Public Service Loan Forgiveness changes overstepped the U.S. Education Department's power and threatened to violate First Amendment protections for free speech
- ▪District Judge Amir Ali's Public Service Loan Forgiveness lawsuit had been brought by nonprofit organizations
- ▪District Judge Amir Ali in Washington issued a ruling similar to Judge Myong Joun's ruling vacating the Public Service Loan Forgiveness changes on the same day as Judge Myong Joun
- ▪Federal judges ruled against the Trump administration's Public Service Loan Forgiveness changes in June 2026
- ▪U.S. District Judge Myong Joun in Massachusetts vacated the U.S. Education Department's October 2025 Public Service Loan Forgiveness changes
Student loan repayment fines
- ▪The U.S. Treasury's takeover of the U.S. government's $1.7 trillion student loan portfolio was first announced in March 2026
- ▪The Trump administration is considering fining Americans who are late on their student loan repayments, according to The Washington Sun
- ▪The Treasury took over the management of the U.S. government's $1.7 trillion student loan portfolio from the Department of Education in late September 2026
- ▪Treasury Secretary Scott Bessent unveiled a new online portal to make it easier for students to keep track of what they owe
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