From the National Council of Nonprofits:
Today, the federal government agreed to dismiss its appeal in NCN v. McMahon, the case filed by NCN and a broad coalition of more than a dozen cities, labor unions, and nonprofits to challenge the U.S. Department of Education’s final rule, which would have excluded certain nonprofits from the Public Service Loan Forgiveness (PSLF) program based on their missions. As a result, the decision issued by a federal court in June stands, preventing the Administration from misusing the PSLF program to punish nonprofits it disfavors.
This is a major win for nonprofits across the country – and their employees – who can continue to access the PSLF program! PSLF helps ensure that talented individuals can afford to choose and remain in careers in public service without being burdened by long-term federal student debt. The final rule would have had far-reaching, harmful consequences for nonprofit workers and the communities that rely on nonprofits’ work.
As NCN’s President and CEO Diane Yentel stated:
“Nearly a year ago, we made the unequivocal decision to challenge this unlawful rule, and today that decision has been vindicated. With the appeal dismissed, the court’s order vacating the rule stands, and PSLF remains as Congress designed it. The program continues to help charitable nonprofits attract and retain the skilled workers our communities rely on. This outcome gives nonprofit employees the certainty that the loan relief they’ve earned through years of public service will be there for them, so they can keep doing the work that strengthens the communities they serve.”
This is yet another example of how nonprofits win when we stand together with one voice! Many thanks to our attorneys at Democracy Forward and Protect Borrowers for their excellent work and to NCN’s network for helping us build such a strong case.
For more information, read Diane’s social media post, and NCN’s press statement.