18 Aug 2025

📜Proposed PSLF Regulations

William D. Ford Federal Direct Loan (Direct Loan) Program

Summary

The Secretary proposes to amend the regulations on the Public Service Loan Forgiveness (PSLF) program under 34 CFR 685.219 to exclude employers that engage in activities that have a substantial illegal purpose. The proposed regulations would prevent taxpayer-funded PSLF benefits from being improperly provided to individuals who are employed by organizations that engage in activities that have a substantial illegal purpose. These proposed changes are intended to improve the administration of the PSLF program and provide protection for taxpayers.

Agencies

  • Education Department

Business Impact ?

$$$ - High

The proposed amendments to the PSLF program regulations focus on excluding employers engaged in illegal activities from qualifying status, affecting eligibility for loan forgiveness. This impacts businesses by clarifying compliance requirements and potentially limiting employee access to financial assistance. Businesses must understand these changes to ensure adherence and maintain qualifying status.

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