Judge Blocks Limits on Public Service Loan Forgiveness 

On June 30, 2026, a federal judge temporarily blocked the Trump administration’s rule restricting eligibility for the Public Service Loan Forgiveness, less than 24 hours before it was set to take effect on July 1. The rule would have allowed the Department of Education to deny loan forgiveness to borrowers employed by organizations deemed to engage in a “substantial illegal purpose.” U.S. District Judge Myong J. Joun ruled that the policy was likely unlawful, finding it arbitrary, capricious, and likely in violation of the First Amendment. Inside Higher Ed reports that the injunction prevents the administration from enforcing the new eligibility restrictions while litigation continues, preserving existing PSLF eligibility rules for public service workers employed by qualifying nonprofit and government organizations