Press Release: New Changes in Loan Forgiveness Break Promises to Public Service Professionals and Threaten Communities Nationwide
PSLF Coalition Urges Congress to Enact Technical Clarification Ensuring All Federal Repayment Plans Qualify for PSLF
Washington, D.C. — June 29, 2026 — The Public Service Loan Forgiveness (PSLF) Coalition is sounding the alarm about a major student loan policy change that takes effect July 1, 2026.
As a result of the One Big Beautiful Bill Act, if you are a new borrower, you must choose the Repayment Assistance Plan (RAP) to participate in PSLF. Borrowers who choose or are placed into the new Tiered Standard Repayment Plan will no longer be able to make qualifying payments toward PSLF. Borrowers with Parent PLUS Loans, who are automatically placed into the Tiered Standard Repayment Plan, are similarly excluded from earning PSLF credit.
The PSLF Coalition, which consists of more than 100 nonprofit and public service organizations across the country, is urging Congress to adopt a simple fix: ensure that any federal repayment plan authorized by Congress qualifies for PSLF.
“Public service professionals are serving a nation where need continues to grow, and resources continue to shrink,” said Verna Williams, CEO of Equal Justice Works. “Congress should not make their jobs even harder by changing the PSLF rules arbitrarily. Lawmakers should act now to ensure public servants can continue serving the communities that depend on them.”
The repayment plan changes are not the only threat to PSLF taking effect today. A new regulation also grants the Secretary of Education extrajudicial authority to penalize employers, terminate their participation in PSLF, and jeopardize the provision of critical services.
“Every restriction placed on PSLF puts our communities at risk of losing access to critical public services, said Christopher P. Chapman, President and CEO at AccessLex Institute. “At a time when communities already face shortages of critical public professions, creating barriers to loan forgiveness sends exactly the wrong message to those who choose careers in service. Congress must reject continued efforts to weaken the program and ensure that borrowers are not denied relief.”
Since its creation in 2007, PSLF has helped fill crucial workforce shortages in health, education, legal services, and public safety by making public service careers more financially sustainable for millions of Americans.
To urge your member of Congress to act through a technical clarification to protect PSLF visit our action alert here: https://www.votervoice.net/AccessLex/Campaigns/138200/Respond
About the PSLF Coalition
The PSLF Coalition is a nationwide alliance of more than 100 organizations dedicated to strengthening and protecting the Public Service Loan Forgiveness (PSLF) program. Founded in 2017, the Coalition advances policies that improve access to PSLF, expands borrower outreach and education, and works with policymakers and the U.S. Department of Education to promote program improvements informed by borrower experiences. Through advocacy, educational resources, and free webinars, the Coalition helps ensure that PSLF remains an accessible and achievable benefit for eligible public service professionals. For more information visit, https://pslfcoalition.org/.
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