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Department of Education Issues New Rule for PSLF
On Oct. 31, the Department of Education issued a new rule stating that employees of organizations that “have a substantial illegal purpose” will no longer be eligible for Public Service Loan Forgiveness (PSLF). The rule outlines illegal activities as those that serve undocumented immigrants, support terrorism, provide gender-affirming services to minors, or are involved in human trafficking.
The rule will go into effect on July 1, 2026.
Lawsuits have already emerged from the National Council of Nonprofits, U.S. cities, and nearly half of all U.S. states. ASDA will continue to monitor any legal action taken before the rule goes into effect.
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