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Trump administration's limits on student loan forgiveness program are blocked. What to know

CNBC · Jul 1, 2026, 3:45 PM · Also reported by 3 other sources

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  • Student loan borrowers don't need to worry about losing eligibility for Public Service Loan Forgiveness based on their employer, after two federal judges blocked a Trump administration rule.
  • District Judge Amir Ali struck down the regulation adding new restrictions to PSLF, which were going to start July 1.

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Student loan borrowers don't need to worry about losing eligibility for Public Service Loan Forgiveness based on their employer, after two federal judges blocked a Trump administration rule.

On Tuesday, U.S. District Judge Amir Ali struck down the regulation adding new restrictions to PSLF, which were going to start July 1. On the same day, U.S. District Judge Myong Joun sided with states, cities and nonprofits that brought legal challenges against the policy, concluding that the rule is "contrary to law" and "violates the First Amendment."

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