Opinion: New DOE Rule Threatens PSLF — Public Service Careers Could Become Unaffordable

Now that the longest government shutdown in U.S. history has ended, it is clear how much the country depends on public servants who often sacrifice both time and money to keep essential services running. As the government reopens, a new Department of Education rule authorized under the Trump administration threatens to make public service an unattainable choice for many Americans.

What the Rule Does — The proposed regulation would allow the Department of Education to strip nonprofit employers of eligibility for the Public Service Loan Forgiveness (PSLF) program if the organization is deemed to have a "substantial illegal purpose." The rule applies a vague "preponderance of evidence" standard to judge whether an employer’s activities conflict with administration priorities. Because the language is imprecise, entire institutions could be disqualified if a single department or program is accused of crossing an undefined line.

That means workers who have made years of qualifying payments toward PSLF could see their progress wiped out with little notice, limited opportunity to respond, and no guaranteed right of appeal. The changes are scheduled to take effect in July 2026, leaving a narrow window for lawmakers and advocates to respond.

Why This Matters

PSLF is one of the strongest incentives that helps talented, service-minded people choose careers in teaching, nursing, social work and legal aid. Because the program requires 120 qualifying monthly payments over roughly ten years of service in government or eligible nonprofit roles, it encourages professionals to stay long enough to develop the expertise and relationships that improve outcomes: students benefit from experienced teachers, patients from continuity of care, and families from stable legal and social-support advocacy.

Example: Equal Justice Works Fellow Cecilia Ballinger serves families in rural Alabama, helping children with disabilities secure essential services and empowering communities to seek systemic change. Without PSLF, fewer law students and other professionals will take on the financial risk of public interest work, leaving communities like hers short on advocates.

Financial Stakes for Public Servants

Public service careers often require painful financial trade-offs. A starting public interest attorney may earn around $69,000 a year — a fraction of what associates at large private firms can make — while carrying six-figure student loan balances. Teachers, nurses, social workers and other mission-driven professionals face similar dilemmas, particularly in rural and underserved areas where salaries tend to be lower but needs are greatest.

If PSLF is weakened, the consequences will fall heaviest on underserved communities: justice deserts could expand, access to health care could shrink, and classrooms could lose seasoned teachers. Students of color and low-income students, who already carry disproportionate student debt, would face higher barriers to entering public service careers. Clients and communities would lose advocates who understand and reflect their lived experiences.

Legal And Democratic Concerns

There is also a statutory question about whether the Department of Education has the authority to rewrite the terms of a program created by Congress. PSLF was established to ensure Americans who commit a decade of service to government or eligible nonprofits are not crushed by student debt. Unilaterally changing that promise raises serious legal and democratic concerns.

What You Can Do — With the rule slated to take effect in July 2026, there is still time for lawmakers, advocates and the public to press for changes or challenge the rule. Policymakers should preserve PSLF to keep public service financially viable and protect the schools, hospitals and legal services that rely on experienced professionals.

When public service becomes financially impossible, we all lose.