The U.S. Department of Education has completed a negotiated rulemaking session aimed at refining the Public Service Loan Forgiveness Program (PSLF). The session concluded after three days of discussions, with the committee voting to clarify what constitutes a qualifying employer under the PSLF.
The Department incorporated 15 substantive changes to the regulatory language based on feedback from negotiators. Despite this, one negotiator opposed the proposal at the meeting's end.
“Over the last several days, the negotiated rulemaking committee has reviewed and ultimately concluded that the PSLF program should be focused on public service,” stated Acting Under Secretary James Bergeron. He added, “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 Department thanks the committee members for their dedication and hard work on this critical issue.”
This initiative is part of an executive order signed by President Trump on March 7, 2025. The order mandates revisions to ensure organizations with substantial illegal activities are excluded from being defined as "public service" within PSLF. The Department announced its intention in May 2025 to establish a 'Student Loans and Affordability Committee' for preparing proposed regulations under Title IV of the Higher Education Act.
Draft regulatory language aims to amend PSLF regulations by excluding employers involved in activities with substantial illegal purposes such as illegal immigration or terrorism. These changes also address how such definitions impact borrower eligibility for loan cancellation.
Following these proceedings, an NPRM will be drafted for publication in the Federal Register to invite public comments. This session marks just one among several planned by the Trump Administration targeting reform and streamlining postsecondary education regulations.
