States Push to Block New PSLF Employer Rule Before July 1 Deadline

A coalition of states is pressing a federal judge (PDF File) to halt the Department of Education's new Public Service Loan Forgiveness (PSLF) rule before it takes effect July 1, 2026. This comes after the Department moved to add a sworn attestation to the program's certification forms in a Federal Register notice (PDF File).

The new rule lets the Secretary of Education strip PSLF eligibility from employers (including state and local governments) that the Department decides have a "substantial illegal purpose." The form change would require employers to confirm, under penalty of perjury, that they have not engaged in such activity.

For more millions of public service workers, an employer's disqualification can mean losing access to loan forgiveness.

PSLF has canceled more than $85 billion in federal student loans for over one million borrowers since the program began. The Department estimates the revised certification form covers roughly 913,713 responses a year.