The Radical Reading Room

The Trump administration has ended its effort to keep a student-loan rule in place after a federal judge vacated it earlier this year. The move leaves standing a June 30 ruling that struck down an Education Department policy tying Public Service Loan Forgiveness eligibility to whether the agency believed an employer had a “substantial illegal purpose.” ([apnews.com](https://apnews.com/article/5cbe13349bff45bea6ae5fc330d7b617?utm_source=openai))

The Department of Education finalized the rule in October 2025 after President Donald Trump signed an executive order directing the agency to revise PSLF so that “public service” would not include work for organizations engaged in activities with a substantial illegal purpose. The final rule was set to take effect July 1, 2026, but the policy never survived the lawsuit challenging it. ([ed.gov](https://www.ed.gov/about/news/press-release/us-department-of-education-announces-final-rule-public-service-loan-forgiveness-protect-american-taxpayers?utm_source=openai))

In the court ruling, the judge concluded the department had gone beyond its authority and raised First Amendment concerns. AP reported on Oct. 21, 2026, that the administration did not explain why it was dropping the appeal. ([apnews.com](https://apnews.com/article/5cbe13349bff45bea6ae5fc330d7b617?utm_source=openai))

The retreat does not create a new finding of misconduct by the administration. It does, however, confirm that the Education Department’s attempt to use PSLF as a way to exclude some employers from the program has now been rejected in court and left without further defense from the government. ([apnews.com](https://apnews.com/article/5cbe13349bff45bea6ae5fc330d7b617?utm_source=openai))