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LEGAL / POLICY UPDATE

PSLF employer-rule update: the court vacated the rule before it took effect.

A federal court decision on June 30, 2026 affected a planned employer-disqualification rule and a related attestation on the PSLF form. Here is what the official update supports—and what it does not say.

Reviewed October 11, 2026Primary source: Federal Student Aid Partners
What is confirmed

Federal Student Aid Partners states that the rule was vacated by a federal judge on June 30, 2026, one day before it was scheduled to take effect. The Department said it was removing the related attestation from the PSLF form to comply with the court order, and reported no other changes to the form at that time.

What the decision concerned

The rule would have allowed the Department to disqualify certain employers from PSLF based on a “substantial illegal purpose” standard. The challenged rule was vacated before its intended effective date. Federal Student Aid Partners’ July 2026 update described removal of the new attestation from the PSLF certification/application.

What this does not mean

It does not automatically qualify a borrower or employer for PSLF, grant forgiveness, or resolve a borrower's payment count. The underlying program requirements still need to be checked against the official rules and each borrower's circumstances. Borrowers should keep employment certification and payment records.

What PSLF borrowers can do

  1. Use the official PSLF Help Tool and current Federal Student Aid guidance.
  2. Confirm eligible Direct Loan status, qualifying employment, and whether the repayment plan is PSLF-eligible.
  3. Save employer certifications, official account messages, and payment-history records.
  4. If a payment count looks wrong, compare the official record against your own documentation and contact the servicer or Federal Student Aid through official channels.

Primary source

Federal Student Aid Partners: PSLF form update and June 30, 2026 court order ↗

Official Public Service Loan Forgiveness tools ↗

This summary discusses a specific court decision based on the linked official notice. It is not a legal opinion or a complete explanation of every PSLF rule or lawsuit.