On June 30, the U.S. District Court for Massachusetts issued a decision regarding the lawsuit challenging the U.S. Department of Education’s final rule to overhaul the Public Service Loan Forgiveness (PSFL) program.
The U.S. Department of Education’s overhaul would have excluded organizations who “engage in activities that have a substantial illegal purpose,” including organizations that advance illegal immigration or support “terrorism,” “child abuse,” “illegal discrimination” or “disorderly conduct.”
The court ruled that the changes to PSLF would have exceeded the Department’s authority, violated the Administrative Procedure Act and First Amendment. The court vacated the ruling, allowing the PSLF program to continue as before.
The Council’s national partners, the National Council of Nonprofits (NCN), served as the lead plaintiff in a coalition of more than a dozen cities, labor unions and nonprofit organizations, filing the lawsuit with the help of Democracy Forward and Protect Borrowers.
In a separate case U.S. District Judge Amir Ali in Washington, D.C., separately struck down the rule as well.
For more information on the ruling or on PSLF, please contact Caroline O’Neill.
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