A group of Democratic senators led by Tim Kaine (D-VA), Kirsten Gillibrand (D-NY), and Cory Booker (D-NJ) introduced a Congressional Review Act (CRA) resolution (PDF File) this week to overturn the Trump administration’s new PSLF rule that gives Education Secretary Linda McMahon authority to disqualify certain public service employers from the program. A companion resolution was introduced in the House by Reps. Joe Courtney (D-CT), Alma Adams (D-NC), and Scott Peters (D-CA).
The resolution currently has 27 Senate cosponsors, including Minority Leader Chuck Schumer and Senators Elizabeth Warren and Bernie Sanders. Once the senators collect 30 signatures, the resolution can be called for a floor vote, where it would need a simple majority to pass.
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Why It Matters: The Trump administration’s rule would allow the Department of Education to strip PSLF eligibility from employers based on their mission, perceived ideological alignment, or involvement in activities the administration deems to have a “substantial illegal purpose.” Critics argue it gives the Secretary of Education sweeping and subjective discretion to pick which public servants qualify for forgiveness.
Congress created PSLF in 2007 with bipartisan support under President George W. Bush. The program allows for borrowers to receive student loan forgiveness after making 10 years of qualifying payments while working for an eligible public service employer.
This new rule changes who counts as a qualifying employer: potentially affecting teachers, nurses, social workers, nonprofit hospital staff, and others who took lower-paying jobs in exchange for that promise.
The Details: The CRA resolution would void the rule entirely and prevent the Department of Education from issuing a substantially similar rule without congressional authorization. Under the rule as written, McMahon could disqualify employers based on a “preponderance of the evidence” standard — which could include court rulings, settlements, or administrative determinations without a formal trial.
Borrowers working for disqualified employers after July 1, 2026, would lose PSLF credit for payments made from that point forward. Individuals have no right to appeal the employer disqualification decision.
The resolution has backing from more than two dozen organizations, including the NEA, AFT, SEIU, AFL-CIO, American Bar Association, Student Veterans of America, and the National Consumer Law Center.
What To Watch: The senators need 3 more signatures to force a floor vote. Even if the resolution passes both chambers, President Trump would almost certainly veto it, meaning Congress would need a two-thirds supermajority to override. That makes passage unlikely, but there are also multiple court cases challenging the rule as well.
Borrowers currently enrolled in PSLF should monitor any communication from their employer about disqualification. Payments made before a potential July 2026 implementation would not be affected, but employer eligibility could shift.
How This Connects: The College Investor has been tracking these PSLF rule changes since the proposed rulemaking stage. Our earlier coverage broke down which workers could lose PSLF under the new restrictions, and we detailed the proposed rules that may block workers from loan forgiveness when the final rule was released. The “substantial illegal purpose” standard covers areas ranging from immigration law violations to providing transgender medical care to minors, giving the Secretary of Education broad discretion over which nonprofits and public employers remain eligible.
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Robert Farrington is the founder of The College Investor and is widely recognized as one of the nation’s leading voices on student loan debt and saving for college. He holds an MBA from UC San Diego Rady School of Management and has spent over 15 years researching, writing, and advising on student loans, 529 plans, financial aid programs, and saving and investing for young professionals.
Robert has been featured in the The New York Times, The Wall Street Journal, The Washington Post, NBC News, and Forbes, where he has been a regular personal finance contributor for over a decade. His work combines both professional expertise and personal experience – he successfully navigated his own student loan repayment journey and has helped thousands of readers do the same.
He is committed to making the intersection of personal finance and education transparent and accessible. You can learn more about Robert on the About Page or on his personal site RobertFarrington.com.