On June 3, the Council’s national partners, the National Council of Nonprofits (NCN), provided oral arguments regarding 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 exclude 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.”
NCN, along with other organizations, argued that organizations have been harmed because the rule deters retention and recruitment efforts; and organizations have already incurred compliance costs regarding the rule.
The judge noted that standing and the Department’s authority are the biggest hurdles for the plaintiffs and defendants, respectively.
NCN’s attorneys requested the rule be vacated and a decision be made prior to it going into effect on July 1.
For more information on the PSFL program overhaul, please contact Caroline O’Neill.
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