Department of Education Proposes Unlawful Overhaul of Public Service Loan Forgiveness

From the National Council of Nonprofits:

The U.S. Department of Education proposed a new rule on August 18 to unlawfully limit which charitable nonprofits qualify as eligible employers under the Public Service Loan Forgiveness program (PSLF).

PSLF is a bipartisan program that provides federal student loan forgiveness to individuals who work full time in public service jobs and make eligible payments for at least ten years, including at charitable nonprofits. With nonprofits making up nearly 10% of the U.S. workforce, they are the second-largest category of eligible employers after government agencies.

NCN opposes the proposed rule changes that seek to limit the types of charitable nonprofits that could serve as qualifying employers. If implemented, these changes would exclude some nonprofit organizations based on their mission or the communities they serve, undermining the core purpose and effectiveness of the program and harming nonprofit workers across the country.

Take Action Today!

Nonprofits and the public now have 30 days to submit comments opposing the proposed overhaul of PSLF. The deadline to submit is September 17, 2025.

NCN urges all nonprofits and advocates to use our comment guide (PDF or Word) to submit public comments. The comment guide includes everything you need to make your voice heard, including clear directions on how to submit your comments, points to raise in your comment, and background on the proposed rule.

Submitting public comments is easy and an effective way to slow or stop harmful regulations! Federal agencies are required to review every comment and respond to the issues they raise. By helping as many nonprofit organizations as possible submit public comments, we can delay or even stop the process from moving forward, protecting nonprofit professionals from real harm. Learn more about how to submit comments.

Read more from NCN here.