CALIFORNIA — California attorney general Rob Bonta on September 17 joined a coalition of 22 states opposing a U.S. Department of Education proposal that could threaten Public Service Loan Forgiveness (PSLF).

The rule would allow the Secretary of Education to disqualify an employer from the PSLF program if that employer is found to engage in activity with a “substantial illegal purpose.”

Examples cited include providing services to immigrants, participating in diversity, equity, and inclusion (DEI) initiatives, or engaging in civil protest and assembly.

“The federal government has a vital interest in deterring unlawful conduct, and we’re moving quickly to ensure employers don’t benefit while breaking the law,” said Under Secretary of Education Nicholas Kent. 

Rule called “vague and arbitrary”

Bonta urged the Department of Education to reconsider what he called a ‘vague and arbitrary’ rule.

“The promise of Public Service Loan Forgiveness allows states like California to attract and retain talent to serve the public good — this is critically important and essential for borrowers who would otherwise be unable to afford serving in the public sector,” said Bonta.

He argued that the rule’s vagueness could allow the Trump administration to target politically disfavored conduct. It also threatens PSLF eligibility for organizations engaged in longstanding, legal activities.

Submit a public comment

Established in 2007, PSLF enables employees of qualifying government and nonprofit employers to have federal student loans forgiven after 10 years of qualifying payments.

The program has provided relief for borrowers in public service roles, which often offer lower pay compared to the private sector.

California and its coalition submitted a formal comment letter urging the department to revise the rule and clarify eligibility standards. 

The public can also submit a comment by clicking here until September 17, 2025.

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