A U.S. Department of Education rule change effective 2026-07-01 permits the department to deny PSLF loan forgiveness to borrowers whose government or nonprofit employers engage in activities with a 'substantial illegal purpose' and vests authority to define 'substantial illegal purpose' in the secretary of education.
July 01, 2026
high
temporal
The rule links program eligibility to the legality of employer activities and assigns interpretive authority to the executive branch via the education secretary.