The administration has withdrawn its appeal of rulings blocking a Public Service Loan Forgiveness (PSLF) rule that would have limited participationopens in new window. This move essentially ends efforts to implement the regulation. Two federal judges struck down the rule in June, prior to its July 1 implementation date, on the grounds that the Department of Education exceeded its statutory authority in making such substantial changes to qualifying employer criteria. Had it gone into effect, the rule would have allowed the department to disqualify employers found to have a “substantial illegal purpose,” which in its view included such activities as aiding or abetting violations of federal immigration law or illegal discrimination and providing certain gender-affirming care to minors.
Last year, APA Services submitted public comments opposing the proposed rule (PDF, 241KB)opens in new window, arguing that it would give the department broad discretion to make employer-eligibility determinations under vague standards, rather than relying on established legal findings and due process. APA Services also cautioned that borrowers could lose expected loan-forgiveness credit because of an employer’s alleged conduct, creating uncertainty for psychologists and other public-service professionals who made long-term career and financial decisions based on PSLF. The association’s comments also argued that weakening the program’s reliability could make it harder for nonprofit and public employers to recruit and retain psychologists, including in underserved communities already facing behavioral health workforce shortages.
APA Services welcomes this victory and will continue its longstanding advocacy for PSLF and other pathways that make psychology education and training more accessible and affordable.
For more information, email Kenneth Polishchuk.