The Department of Justice ended its effort to overhaul a student loan forgiveness program without explanation.
The Public Service Loan Forgiveness program forgives loans for qualified public employees after a decade of payments, a move designed to make public-sector jobs more attractive. The Trump administration had been trying to overhaul the program by allowing the education secretary to disqualify employers from the program over things such as aiding illegal immigrants, providing transgender surgeries for minors, and diversity, equity, and inclusion activity.
In June, federal judges ruled against the DOJ and in favor of activists, warning that the new rules could make the program a tool for political retribution and a violation of the First Amendment. The DOJ launched two appeals, but dropped them both on Wednesday.
Dan Zibel, an attorney for Student Defense, praised the move in a statement, obtained by the Associated Press.
TRUMP ADMINISTRATION CLOSES 19 INVESTIGATIONS INTO UNC OVER ALLEGED DISCRIMINATION AFTER REACHING DEAL
“The Trump administration’s attempt to weaponize public service loan forgiveness against organizations it disagrees with was anti-democratic and unlawful from the start,” he said. “This is a significant victory for millions of Americans who have dedicated their careers to public service.”
The PSLF program has forgiven loans for over 1 million people. The new rule disqualifying some employers was made in October 2025 and was due to take effect on July 1. The ruling striking it down came the day before it was set to take effect.
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[ H/T Washington Examiner ]
