PSLF Employer Rule Vacated: Where PSLF Stands in 2026
The Department of Education wrote a rule that would have removed PSLF eligibility from employers it found to have a "substantial illegal purpose." A federal court vacated it on June 30, 2026, the day before it was due to take effect. Here is where PSLF stands.
The rule
The final rule was published in the Federal Register on Oct. 31, 2025 (90 FR 48966) with an effective date of July 1, 2026. It would have let the Secretary decide that an employer had a substantial illegal purpose and stop counting its employees' payments toward PSLF. (Federal Register, Oct. 31, 2025 ↗)
The court decision
On June 30, 2026, a federal judge in the District of Massachusetts vacated the rule. The Department says it is removing the related employer attestation from the PSLF form to comply with the court order, and that no other changes have been made to the form. (FSA Knowledge Center, July 13, 2026 ↗) The Department can still appeal.
What this means for you
- PSLF still works under the existing qualifying-employer rules: government organizations and 501(c)(3) nonprofits, among others.
- You still need 120 qualifying monthly payments while working full time for a qualifying employer, on a qualifying repayment plan.
- Certify your employment every year so your count stays current. Use the official PSLF Help Tool ↗.
Estimate your PSLF timeline Public service programs
Sources: Federal Student Aid, PSLF ↗. Last checked Oct 22, 2026.
Did the PSLF employer rule take effect?
No. A federal court vacated the rule on June 30, 2026, before its July 1, 2026 effective date. The Department says it removed the related attestation from the PSLF form.
Do I need to do anything differently for PSLF?
Not because of this rule. Keep certifying employment each year and stay on a qualifying repayment plan.