The government quit its fight over public service loan forgiveness | The Receipts - Dataspheres AI

The government quit its fight over public service loan forgiveness THE RECEIPTS The government quit its fight over public service loan forgiveness October ...

The government quit its fight over public service loan forgiveness THE RECEIPTS The government quit its fight over public service loan forgiveness October 23, 2026 Welcome to The Receipts. The fight is over The fight is over — October 21: the government drops 2 of its 3 appeals — A rule narrowing Public Service Loan Forgiveness stays struck down — Forbes: a win for 2.3 million borrowers working toward forgiveness The College Investor (Oct 21): joint stipulations to dismiss in the D.C. Circuit and First Circuit nonprofits case; states' appeal still open. Forbes (Oct 23): 2.3 million borrowers pursuing PSLF. What Public Service Loan Forgiveness is What Public Service Loan Forgiveness is — Created by Congress in 2007 — Cancels the rest of a federal student loan after 120 qualifying monthly payments — For full-time public service: 18 kinds of work, from law enforcement to 501(c)(3) nonprofits NationofChange citing the Congressional Research Service: created 2007, 120 qualifying payments, 18 categories of public service job. Who it reaches Who it reaches Forbes Oct 23 2026: about 2.3 million borrowers pursuing PSLF. Brookings: by January 2026, over 1.2 million borrowers had $90.6 billion forgiven, nearly $75,000 each. What has been forgiven What has been forgiven $90.6B forgiven through January 2026 $75,000 average per borrower, nearly Brookings: $90.6 billion; average relief of nearly $75,000 per borrower. Who decides which jobs count? Who decides which jobs count? That was the whole fight. The question slide (GOV-058 arc). The rule The rule — Final rule October 31, 2025, from Education Secretary Linda McMahon — Employers with a "substantial illegal purpose" would lose eligibility — Listed examples: aiding illegal immigration, supporting terrorism, a pattern of illegal discrimination — From July 1, 2026, payments at those employers would not have counted NationofChange citing CRS: final rule Oct 31 2025 after a March 2025 executive order; criteria listed; payments after July 1 2026 would not count. How it unraveled How it unraveled March 2025 an executive order October 31, 2025 the final rule June 30, 2026 two courts strike it down, a day before it starts August 2026 the government appeals all 3 rulings October 21, 2026 it drops 2 of the appeals NationofChange / CRS; The College Investor (appeals filed August, two dismissed Oct 21). Why the courts said no Why the courts said no — Both courts: the law's text rules out a "substantial illegal purpose" test — One court: the law credits work at any 501(c)(3), with no power to "pick and choose" — Who sued: nonprofits and cities, plus 22 states and D.C. NationofChange citing CRS on both June 30 rulings; companion case brought by 22 states and D.C. (The College Investor). The other side The other side — The department called the rule "restoring" the program to its purpose under the law — The dismissal filings gave no reason for dropping the appeals — Still open: the 22 states' case; a government brief is due November 4 ed.gov fact sheet Oct 30 2025: 'Restoring Public Service Loan Forgiveness to Its Statutory Purpose'. The College Investor: stipulations give no reason; states' appeal open, brief due Nov 4. The law decides which jobs count. The law decides which jobs count. Two federal courts, June 30, 2026. Now the government has stopped arguing. Mic drop (GOV-058): both June 30 rulings held the statute, not the secretary, defines qualifying employment. Easy Media Kits on Dataspheres AI Easy Media Kits on Dataspheres AI Automate videos like this. dataspheres.ai/pages/dataspheres-ai/one-show-every-platform Scan to learn more Easy Media Kits on Dataspheres AI. Automate videos like this. Scan the code or go to dataspheres.ai/pages/dataspheres-ai/one-show-every-platform.