WASHINGTON, D.C. — The U.S. Department of Education has concluded a key negotiated rulemaking session to strengthen eligibility standards for the Public Service Loan Forgiveness (PSLF) program, aiming to exclude employers engaged in illegal activities from qualifying as public service organizations.
Over three days of discussions ending July 2, an overwhelming majority of the negotiated rulemaking committee supported refining the definition of a qualifying employer, with only one negotiator opposing the final proposal. In response to feedback, the Department adopted 15 substantive changes to the draft regulations.
“Over the last several days, the negotiated rulemaking committee has reviewed and ultimately concluded that the PSLF program should be focused on public service,” said Acting Under Secretary James Bergeron. “While the committee was not able to reach consensus, I’m proud that the committee members representing institutions of higher education, veterans, taxpayers, borrowers, and the business community have helped fulfill one of President Trump’s promises to ensure that PSLF does not subsidize organizations that are breaking the law.”
The proposed changes follow President Trump’s March 2025 executive order directing the Department to ensure that organizations engaging in activities with a substantial illegal purpose — including terrorism, illegal immigration facilitation, and child trafficking — are disqualified from PSLF eligibility. The updated rules also define illegal activities, establish criteria for employer disqualification, and outline procedures for borrower impact and employer responses.
The Department will now prepare a Notice of Proposed Rulemaking for public comment. This marks the first of several regulatory reforms planned by the administration to strengthen oversight and refocus federal aid on lawful, genuine public service work.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.