ED Appeals Court Decision That Struck Down PSLF Final Rule
By Megan Walter, Senior Policy Analyst
The Department of Education (ED) has appealed a federal court’s decision to vacate, or strike down, the Public Service Loan Forgiveness (PSLF) Final Rule, notifying the court on Thursday of its intent to take the case to the First Circuit Court of Appeals.
ED is appealing Judge Myong J. Joun’s June 30, 2026, decision and dismissal, which granted summary judgment to the plaintiffs (a ruling in the plaintiffs' favor without a full trial) and denied the department’s cross-motion to dismiss (the department's request to have the case thrown out or decided in its favor).
The PSLF Final Rule would have allowed the department to deny eligibility for the forgiveness program to public service workers whose employers were found to have a “substantial illegal purpose.” The rule was vacated just hours before its scheduled July 1, 2026, effective date.
The vacatur remains in effect while the appeal is pending. NASFAA will continue to monitor as the case moves forward and will provide updates via NASFAA’s litigation tracker, as well as in Today’s News.
Publication Date: 8/28/2026
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