Letter Opposing PSLF Modifications

September 17, 2025

The Honorable Linda McMahon Secretary

United States Department of Education 400 Maryland Ave, SW

Washington, DC 20202

Re: Docket ID ED-2025-OPE-0016

Dear Secretary McMahon:

On behalf of the American Council on Education (ACE), and the undersigned higher education associations, we write to express our strong opposition to the changes proposed to the Public Service Loan Forgiveness (PSLF) program in the Notice of Proposed Rulemaking (NPRM) issued on August 18 in the Federal Register.1 These proposed changes, while aligned with Executive Order 14187 issued on February 3,2 are not aligned with the law or congressional intent.

The PSLF program was created in the College Cost Reduction and Access (CCRAA) Act of 2007,3 on a bipartisan basis in both the House and Senate and was signed into law by President George Bush. Congress created PSLF to ensure a brighter future with less financial burden for public servants, and lawmakers wanted to properly recognize the contributions and challenges of public service while encouraging participation in these careers. As clearly articulated in statutory language, the law defined public service employment as full-time jobs at government and 501(c)(3) nonprofit organizations, and particularly identified fields of employment such as emergency management, social work in a public child or family service agency, public library sciences, and public education.

In the August 18 NPRM, the Department of Education attempts to justify its proposal to deny certain organizations qualifying employer status because the Higher Education Act (HEA) does not define the term public service. However, the HEA clearly defines a public service job without a need to bifurcate public service and job. In fact, Congress wanted to ensure that it was clear what types of jobs would qualify for PSLF and as a result the Department was only given narrow authority to alter this definition in the limited circumstances of jobs in high-need subject areas of shortage.

The PSLF program was created to benefit individuals who chose public service jobs and these are the very people that will be severely harmed if these proposed regulations were to go into effect. Currently, there are over 2.5 million borrowers, with a cumulative loan balance of $225 billion, who are employed at organizations with qualifying employer status. Of these borrowers, only 20,400 have made over 119 payments towards their student loan forgiveness, which leaves millions of borrowers who will see their eligibility put at risk should these regulations go into effect on July 1, 2026.6 These borrowers entered their professions making a conscious choice to forego higher salaries in order to serve the public across a range of critical needs with the expectation that the law would be observed and they would be eligible for loan relief if they met the requirements.

This is not the only likely harm to borrowers that would result from the proposed regulations, as the Department acknowledges that they may impose further costs to borrowers including potential delays in loan forgiveness processing due to an employer losing qualifying employer status as well as potential misunderstandings of the new regulations leading borrowers to be confused and delaying the application of the forgiveness benefit. The Department states:

Borrowers who are employed by organizations disqualified under the new rules may experience a temporary disruption in their progress toward loan forgiveness. These borrowers will need to transition to qualifying employers to continue receiving credit for their payments. Borrowers who misunderstand the new rules may apply for forgiveness without knowing or understanding the implications of the new rule on their former or current employer as they may no longer be a qualifying employer.

It is not an easy feat for a borrower to simply “switch” employers, and it is unreasonable to assume that this is actually a viable option for borrowers. Compounding the above harm to borrowers is that the regulations prevent them from even requesting a reconsideration of the Department’s decision to revoke their employer of qualifying employer status.

It is our hope that you will reconsider this proposal and approach any changes to the PSLF program with the goal of improving the program to ensure borrowers receive the benefits they are entitled to and that the law guarantees. We are happy to work with you on ways to improve the program for student loan borrowers outside of changes to the actual law.

We appreciate your time and consideration.

Sincerely,

Ted Mitchell President

AACTE: American Association of Colleges for Teacher Education AccessLex Institute

Achieving the Dream

ACPA-College Student Educators International

AICUP-Association of Independent Colleges and Universities in Pennsylvania American Association of Colleges and Universities

American Association of Colleges of Nursing

American Association of Collegiate Registrars and Admissions Officers American Association of Collegiate Registrars and Admissions Officers American Association of Community Colleges

American Association of Veterinary Medical Colleges American Council on Education

American Library Association Association for Institutional Research Association of American Law Schools Association of American Medical Colleges Association of American Universities

Association of Community College Trustees Association of Governing Boards

Association of Governing Boards of Universities and Colleges Association of Independent Colleges & Universities in Massachusetts Association of Independent Colleges and Universities of Rhode Island Association of Jesuit Colleges and Universities

Association of Schools and Colleges of Optometry Association of Schools and Programs of Public Health

College and University Professional Association for Human Resources College and University Professional Association for Human Resources Complete College America

Council for Advancement and Support of Education Council for Opportunity in Education

Council of Independent Colleges EDUCAUSE

Higher Education Loan Coalition Higher Learning Commission

Hispanic Association of Colleges and Universities Maryland Independent College and University Association Middle States Commission on Higher Education

NAFSA: Association of International Educators

NASPA-Student Affairs Administrators in Higher Education National Association for College Admission Counseling National Association of College and University Business Officers National Association of Student Financial Aid Administrators National Council for Community and Education Partnerships New England Commission of Higher Education

North Carolina Independent Colleges and Universities