Department Of Education Limits Definition Of ‘Qualifying Employer’ For Student Loan Forgiveness Program

The federal Department of Education finalized a rule to go into effect July 1, 2026 limiting student loan forgiveness for those working in public service, according to an announcement on October 30, 2025. The public service student loan forgiveness (PSLF) program, established in 2007, had allowed federal student loan forgiveness for government and non-profit employees after 10 years of service with qualifying employers and regular monthly payments on the loans.

The rule changes the definition of a “qualifying employer” to align with Executive Order 14235, Restoring Public Service Loan Forgiveness, which was issued on March 7, 2025. The executive . . .