Trump Administration Drops Appeal in Public Service Loan Forgiveness Litigation, Securing Victory for Social Workers

Trump Administration Drops Appeal in Public Service Loan Forgiveness Litigation, Securing Victory for Social Workers

Oct 29, 2026

The National Association of Social Workers (NASW) welcomes the Trump administration's decision to abandon its appeal in National Council of Nonprofits et al. v. McMahon et al., securing an important legal victory for social workers and other public service professionals who rely on the Public Service Loan Forgiveness (PSLF) program.

On October 21, 2026, the administration filed a joint stipulation of dismissal with the U.S. Court of Appeals for the First Circuit, ending its appeal of a federal court decision that struck down the Department of Education's unlawful restrictions on PSLF eligibility. The decision leaves in place the court's ruling vacating the rule and ensures that the challenged restrictions will not take effect.

NASW joined the litigation as a plaintiff alongside the National Council of Nonprofits, American Federation of Teachers, American Federation of State, County and Municipal Employees (AFSCME), National Education Association, and other nonprofit organizations and local governments to protect the financial security of public service workers and preserve the integrity of the PSLF program.

"Public Service Loan Forgiveness stands as Congress wrote it because we refused to let this Administration rewrite the rules," said NASW CEO Anthony Estreet, PhD, MBA, LCSW-C. "This win means social workers can keep serving their communities without fear of losing the forgiveness they've earned. We fought for this program because it keeps talented people in public service. Congress set the standard. The courts upheld it. Social workers can count on it."

Congress created PSLF to encourage individuals to pursue careers in public service by providing student loan forgiveness after qualifying employment and payments. The program is particularly important to social workers, who often incur significant educational debt while preparing for careers serving vulnerable individuals, families, and communities.

The challenged rule would have allowed the Department of Education to disqualify certain government and nonprofit employers from PSLF based on the nature of their activities, potentially jeopardizing loan forgiveness for employees who had dedicated years of service toward meeting the program's requirements.

On June 30, 2026, the U.S. District Court for the District of Massachusetts ruled that the Department of Education exceeded its statutory authority by imposing restrictions Congress had not authorized. The court also found the rule arbitrary and capricious and in violation of the First Amendment. The court vacated the rule before its scheduled July 1, 2026 effective date.

The administration subsequently appealed that decision but has now withdrawn its challenge, preserving the court's ruling and protecting PSLF eligibility from the proposed restrictions.

NASW will continue to advocate for policies that support social workers and strengthen the public service workforce, including protecting access to student loan forgiveness and opposing efforts that threaten the financial security of professionals serving our nation's communities.