Trump administration's limits on student loan forgiveness program are blocked. W

Student loan borrowers don't need to worry about losing eligibility for Public Service Loan Forgiveness based on their employer, after two federal judges blocked a Trump administration rule.

On Tuesday, U.S. District Judge Amir Ali struck down the regulation adding new restrictions to PSLF, which were going to start July 1. On the same day, U.S. District Judge Myong Joun sided with states, cities and nonprofits that brought legal challenges against the policy, concluding that the rule is "contrary to law" and "violates the First Amendment."

The Trump administration's rule would have changed the definition of a "qualifying employer" under PSLF to exclude organizations that "engage in unlawful activities."

PSLF, signed into law in 2007 by George W. Bush, offers debt cancellation after a decade to borrowers who work for non-profits and the government.

Over 9 million borrowers may be eligible for PSLF, according to a 2022 estimate from Protect Borrowers, a nonprofit.

"This decision marks an important victory for public servants and the rule of law," said Jaylon Herbin, director of federal campaigns at the Center for Responsible Lending.

"Congress made clear who qualifies for Publ

Fuente original: CNBC Top News (https://www.cnbc.com/2026/07/01/trumps-limits-on-student-loan-forgiveness-program-blocked.html)