WASHINGTON, DC, November 4 — Four nonprofit public interest organizations today filed a lawsuit challenging a new U.S. Department of Education (ED) rule that threatens to disqualify certain employers from the federal Public Service Loan Forgiveness (PSLF) program. The plaintiffs in the case, Robert F. Kennedy Human Rights Group, American Immigration Council, The Door Center of Alternatives, Inc., and United Latin American Citizens League (LULAC), are represented by the Student Advocacy and Public Citizen Litigation Group.
The ED enacted the new rules in response to an executive order issued by President Donald Trump. The rule, finalized Oct. 31, allows ED to disqualify employers from the PSLF program that are deemed by the Secretary of Education to have a “serious unlawful purpose.” Under this rule, the ED will determine for itself whether this standard is met based on a unilateral determination that an organization engages in activities unfavorable to the regime with respect to immigration, gender-affirming care, activities that purport to discriminate, or other areas. The rule’s vague and overbroad language allows for arbitrary enforcement of mission-driven organizations’ ability to do their work or express opinions opposed to the government.
ED’s new regulations could harm many of the 2.5 million federal student loan borrowers who have collectively worked more than 100 million months in public service jobs to qualify for PSLF forgiveness.
“This rule would make it more difficult for employers in certain fields to recruit and train employees, such as advocacy on behalf of immigrants, and would chill politically disadvantageous but legitimate activities by PSLF employers,” the complaint states. “This rule is contrary to the PSLF Act, exceeds the Department’s regulatory authority, and violates the constitutional rights of nonprofit organizations whose employees are legally eligible for PSLF.”
PSLF was established in 2007 to encourage students to pursue careers in the civil service after graduation. The program provides federal student loan forgiveness for those who repay such loans for 10 years while working full-time as public servants. The statute establishing this program provides a clear list of eligible employers, including military, emergency management, public health, government, public safety, law enforcement, early childhood education and library science, and all 501(c)(3) organizations, among others.
The lawsuit asks the court to declare the new rules illegal and that ED lacks legal authority to change the statutory standards for PSLF.
“Congress created PSLF not to curry favor with the president, but to support those who work in public service. The Trump administration should not be allowed to use a program that rewards public servants as a weapon against its political opponents,” said Cormac Early, an attorney with the Public Citizen Litigation Group and lead attorney on the case.
“Congress made a promise that if Americans give back to their country, the country will give back to them. Now, the Trump administration wants the power to renege on that promise if it disagrees with an employer’s mission or political views,” said Student Defense President Aaron Ament. “This new illegal rule is a slap in the face to the millions of first responders, health care workers, teachers, and other public servants who trusted the government to keep its promises.”
“The Trump administration’s attack on the Public Service Loan Forgiveness Program strikes at the heart of civic space and public service. By targeting individuals who choose to work for nonprofit organizations that defend the human rights of immigrants and advance diversity, inclusion, and transgender rights, this rule aims to silence voices for equity and justice and undermine the ability of these organizations to recruit the next generation of leaders,” said Kerry Kennedy, president of RFK Human Rights.
“Public Service Loan Forgiveness is a clear commitment from the government to individuals who have dedicated themselves to public service,” said Jorge Lowery, managing director of programs and strategy at the American Immigration Council. “This regulation weaponizes that commitment. No one should have to choose between supporting their neighbors and securing the economic security they were promised.”
“Latino families across the country rely on mission-driven nonprofits for immigration assistance, health care, programs to support underserved youth, and more. This rule would give any administration a blank check to punish nonprofits it doesn’t like, and jeopardizes the future of the teachers, nurses, veterans, and legal advocates who serve our people every day,” said Juan Proaño, CEO of the LULAC Institute. “The LULAC Institute joined this lawsuit to defend the statute, protect the workforce, and ensure that Latino borrowers are never forced to choose between serving their communities and honoring promises their government has already made.”
Read the complaint here.
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About Robert F. Kennedy’s human rights:
Founded in 1968, RFK Human Rights is a nonpartisan nonprofit organization dedicated to realizing Robert F. Kennedy’s dream of a more just and peaceful world. RFKHR works with local activists to champion key human rights issues, champion changemakers, and advance strategic litigation in the United States and around the world. And to ensure change is lasting, RFKHR promotes a social good approach to business and investing and educates the next generation of leaders about human rights and social justice.
About the American Immigration Council:
The American Immigration Council works to strengthen America by shaping the way we think and act about immigrants and immigration. The Council takes a four-pronged, coordinated approach to driving change: litigation, investigations, legislative and administrative advocacy, and communications. Follow us on LinkedIn, BlueSky, Instagram and YouTube for the latest Congressional news and information.
About The Door – The Alternative Capital
For over 50 years, The Door has been a trusted destination for young people aged 12 to 24. Everyone is welcome to be who they are, to be themselves, to meet their challenges, and to access services when and how they need it. With roots in the heart of New York City and locations in every borough, The Door offers comprehensive programs and services including mental health counseling, health and nutrition support, legal services, housing assistance, arts, education and career guidance. Everything at The Door is free and everyone is welcome.
Broome Street Academy, a charter high school located on the grounds of The Door, admits 300 students a year from all five boroughs, with seats reserved for students housed in transitional or foster care facilities.
About LULAC Institute
LULAC Institute is the nonprofit arm of The League of United Latin American Citizens Institute (LULAC), the nation’s oldest and largest Latinx civil rights organization. Founded in 1929, LULAC is dedicated to advancing the rights and opportunities of Latinos through advocacy, community building, and education. With a growing network of councils across the country, LULAC remains steadfast in its mission to protect and empower millions of Latinos, contributing to America’s prosperity every day. For more information about LULAC and its work, please visit www.LULAC.org.
About the Citizen Litigation Group
Public Citizen Litigation Group is the litigation arm of Public Citizen, a nonprofit consumer advocacy organization. For more than 50 years, our litigation group has worked to advance the interests of consumers, workers, and the public, and to hold governments and businesses accountable to the public. For more information, please visit www.citizen.org/litigation.
About student defense
The National Student Legal Defense Network (“Student Defense”) is a nonprofit organization that works through litigation and advocacy to advance students’ rights to educational opportunities and ensure that higher education is a springboard to economic mobility.
Media contact:
RFK Human Rights
amy zervin reed
[email protected]
american immigration council
Elissa Pachico
[email protected]
The Door – the hub of alternatives
kirkley strand
[email protected]
Lulac
david cruz
[email protected]
National Litigation Group
Omar Badar
[email protected]
student defense
kelly leary
[email protected]
