On October 31, 2025, the U.S. Department of Education (the Department) published a final rule amending the Public Service Loan Forgiveness (PSLF) program. The final rule takes effect July 1, 2026, and amends the definition of eligible employers to exclude those engaged in activities deemed by the Department to be “indicative of a substantial illegal purpose.” Under the final rule, activities “indicative of a substantial illegal purpose” include, among others, those related to immigration, health services for transgender youth and “engaging in a pattern of aiding and abetting illegal discrimination.”

 

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