PSLF Coalition Statement on PSLF Changes Effective July 1, 2026

As the United States embarks on its 250th anniversary, we have an opportunity to reaffirm one of our nation’s enduring democratic values: that service to others should be honored, supported, and rewarded. Public servants and nonprofit professionals, including teachers, nurses, legal aid attorneys, veterinarians, social workers, counselors, and countless others, are the people who strengthen our communities, expand opportunity, and help our democracy thrive. The Public Service Loan Forgiveness (PSLF) program was created to recognize that commitment and ensure that student debt does not stand in the way of a career dedicated to serving the public. 

Recent changes to federal student loan repayment create new barriers to PSLF eligibility, leaving many borrowers unable to earn credit toward forgiveness simply because of the repayment plan in which they are enrolled. Starting July 1, 2026, borrowers who choose or are placed into the new Tiered Standard Repayment Plan will no longer be able to earn qualifying PSLF credit.  In addition, Parent Plus borrowers are similarly excluded because they are automatically placed into the Tiered Standard Repayment Plan.  

At the same time, new regulations contain provisions that could exclude organizations deemed to engage in certain “illegal activities,” narrowing which nonprofit employers qualify for PSLF.  This threatens to deny relief to borrowers based on their employer’s status or alleged activities rather than the public service work they perform every day. 

These changes undermine the very purpose of PSLF: attracting and retaining talented professionals in careers that communities depend on every day. They also create uncertainty and confusion for the workforce our democracy relies on, particularly in rural and underserved areas where public service professionals are already in short supply. 

Congress must act now. A simple technical clarification to the Higher Education Act would ensure that all federal repayment plans authorized by Congress qualify for PSLF and preserve the promise made to generations of public servants.  

As we celebrate 250 years of American democracy, we should be strengthening the institutions and people that hold our nation together, not creating new obstacles for those who have chosen lives of service. The PSLF Coalition urges Congress to act swiftly to protect PSLF and reaffirm that in America, public service remains a pathway to opportunity, community, and a stronger democracy for generations to come. 

Sign the Action Alert here: https://www.votervoice.net/AccessLex/Campaigns/138200/Respond