Nonprofits Mobilize to Protect Public Service Loan Forgiveness
On Aug. 18, the U.S. Department of Education (Department) proposed a new rule to unlawfully limit which charitable nonprofits qualify as employees under PSLF. On Oct. 31, the Department issued the Final Rule, which will make it harder for nonprofit professionals to access the student loan forgiveness they have earned through years of public service.
National Council of Nonprofits (NCN) opposes the Final Rule. PSLF was created in 2007 with bipartisan support to recognize individuals who dedicate their careers to public service. The program recognizes that nonprofit, government, and other public service professionals provide essential work that benefits our communities. In return, employees who work full time in qualifying public service jobs and make 120 qualifying monthly payments have their loans forgiven.
All 501(c)(3) charitable nonprofits are eligible employers under federal law. The Final Rule seeks to change that promise by letting the current and future administrations decide which types of charitable missions count.
Mobilizing the Nonprofit Sector
When the proposal dropped, NCN moved quickly to respond with a step-by-step comment guide to help individuals and organizations submit public comments in opposition to the proposed rule. The comment period ended on Sept.17, 2025.
The response was powerful, with nearly 14,000 individuals and organizations submitting comments, including many from NCN's network. Advocates sent a clear message: nonprofit work is public service, and the people who do that work rely on PSLF.