The 2025 PSLF employer rule is not in force
A rule can sit in the Code of Federal Regulations and be unenforceable at the same time. This is one of those, and it matters for anyone in public service.
In October 2025 the Department of Education published a final rule narrowing the definition of a qualifying employer for Public Service Loan Forgiveness, excluding organisations found to have a "substantial illegal purpose" across several defined categories. It was due to take effect on 1 July 2026.
It never took effect. On 30 June 2026, one day before the effective date, two federal district courts vacated it.
"Due to a court order, the U.S. Department of Education can't enforce certain changes to the PSLF Program previously scheduled to take effect July 1, 2026. Until we update the PSLF Form, employers may use the current version to certify a borrower's employment. Language regarding an employer's certification that it has not engaged in illegal activities will have no effect."
That is the Department itself, on its own borrower-facing page, saying the rule cannot be enforced. It is stronger evidence than any news report about the litigation.
Why so much coverage still describes this as current law
Here is the trap, and it is worth understanding because it will recur with other rules.
A court vacatur does not delete text from the Code of Federal Regulations. Removing the text requires the agency to publish a removal, which takes time and may not happen while an appeal is possible. In the meantime the vacated language sits in the eCFR looking exactly like every other regulation.
The "substantial illegal purpose" definition is still visible at 34 CFR 685.219(b)(30) today. Anyone who checks the CFR, sees the text, and reports it as current law has done what looks like careful primary-source work and has reached the wrong conclusion.
Presence in the CFR is not evidence that a rule is in force. Verifying a regulatory claim takes two steps: find the text, then check its enforcement status against agency announcements, borrower-facing guidance and the litigation docket.
This is why the sources page on this site carries a status column alongside every citation, rather than treating a CFR link as the end of the enquiry.
What this means for you
The pre-existing definition of a qualifying employer applies: government organisations at any level, 501(c)(3) nonprofits, and certain other nonprofits providing qualifying public services.
The calculator on this site models no employer disqualification. Applying a haircut on the strength of a vacated rule would wrongly alarm nonprofit and government employees, and in the worst case could push someone toward an irreversible private refinance on the basis of a restriction that does not exist.
To check a specific employer, use the Department of Education PSLF Help Tool, which checks against the Department's own employer records rather than against anyone's interpretation.
What this page does not claim
That the matter is permanently settled. A vacatur can be appealed and an agency can attempt a new rulemaking. This page describes the position as of the review date at the top, and the appeal posture was not independently confirmed from court dockets when it was written.
If PSLF is central to your plans, treat this as a live area and check the current position directly rather than relying on any page, this one included.
Related: what PSLF is worth against a refinance offerand how every rule on this site is tracked.
Common questions
Is the PSLF employer eligibility rule in effect?
No. Two federal district courts vacated the October 2025 rule on 30 June 2026, one day before its 1 July 2026 effective date. Federal Student Aid states that the Department cannot enforce the changes and that the language about certifying an employer has not engaged in illegal activities will have no effect.
Why does the rule still appear in the Code of Federal Regulations?
Because a court vacatur does not remove text from the CFR by itself. The agency has to publish a removal, and until it does the text remains visible in the eCFR. This is why citing the CFR alone is not sufficient evidence that a rule is enforceable, and why the sources page on this site tracks enforcement status separately from citation.
Does my nonprofit employer still qualify for PSLF?
The pre-existing definition of a qualifying employer applies: government organisations at any level, 501(c)(3) nonprofits, and certain other nonprofits that provide qualifying public services. Use the Department of Education PSLF Help Tool to check a specific employer, since it checks against the Department’s own records.
Could the rule come back?
It is possible. A vacatur can be appealed, and an agency can attempt a new rulemaking. This page states the position as of its review date and does not claim the matter is permanently settled. If PSLF is central to your plans, check the current status rather than relying on any page, including this one.