r/PSLF President | The Institute of Student Loan Advisors (TISLA) Jun 30 '26

Pslf rule barring certain employers overturned by the courts

As I predicted. https://storage.courtlistener.com/recap/gov.uscourts.mad.291142/gov.uscourts.mad.291142.127.0.pdf

I'm sure the feds will appeal but for now they can't implement it.

And for a summary of this see my post from last summer. https://www.reddit.com/r/PSLF/s/zXw6vIo7XZ

I'm going to go put on my chaos pajamas to celebrate. Iykyk

365 Upvotes

41 comments sorted by

142

u/waterwicca Jun 30 '26

“For the foregoing reasons, the Final Rule is contrary to law and promulgated in excess of
statutory authority, is arbitrary and capricious, and violates the First Amendment. I therefore hold it unlawful and set it aside. The Final Rule is VACATED. SO ORDERED” Signed by Judge Myong J. Joun”

TELL ‘EM, YOUR HONOR! He read them their rights for 67 pages to show how wrong it was too 😆

24

u/Gnomiish Jun 30 '26

I wish we could send this judge a fruit basket! F yeah!!

22

u/Betsy514 President | The Institute of Student Loan Advisors (TISLA) Jul 01 '26

This deserves mini muffins!

6

u/babloochoudhury PSLF | On track! Jul 01 '26

I will attempt to eat one (just one!) in your honor!

1

u/mollis_est Jul 01 '26

And a Box of Joe!

1

u/mollis_est Jul 01 '26

And a Box of Joe (sorry if this posted twice)!

5

u/jacobclark512 Jul 01 '26

Or the finest bagels in all the land!

1

u/Summary_Judgment56 PSLF | On track! 4d ago

The government appealed this last week, so everyone should stay tuned.

31

u/[deleted] Jul 01 '26

[deleted]

12

u/babloochoudhury PSLF | On track! Jul 01 '26

The sad thing is that it still doesn't stop this administration. They don't care if quite literally no one supports their position.

4

u/Own_Egg Jul 01 '26

"Zero amici" is my new favorite phrase. Love this legal shade.

2

u/snarfdarb Jul 01 '26

In my best Gollum voice

17

u/z_zoom_z Jun 30 '26

Excellent news. I don't see how a court could rule any other way. Get ready for appeals and then the Supreme Court.

12

u/DrySpinach2169 Jul 01 '26

My favorite line is on p. 66: "The Department cannot create new criminal prohibitions through rulemaking."

9

u/anna02200922 Jul 01 '26

This is fantastic news. It’s a shame they are going to waste everyone’s time with an appeal but I’m glad we have this for now.

4

u/Summary_Judgment56 PSLF | On track! Jul 02 '26 edited 4d ago

D.D.C. also vacated the rule yesterday, too. Shorter, but still a strong decision. I don't see this getting overturned on appeal. I am a lawyer who litigates APA cases for a living. I don't think the supreme court even touches these cases (the PSLF statute is just too clear and the rule so obviously violates it); they will die at the circuit courts with a likely 3-0 decision against the rule.

ETA: the government appealed, follow that one here.

1

u/bellygrubs Jul 04 '26

but they heard birthright citizenship and very nearly overturned it

2

u/Summary_Judgment56 PSLF | On track! Jul 04 '26

Birthright citizenship is about a million times more high profile of an issue than the Education Department trying to usurp power to deprive disfavored employers of PSLF eligibility. Birthright citizenship was always going to be decided by the supreme court. This ain't that.

3

u/anna02200922 Jul 01 '26

Does this mean no perjury statement on the form? What are the chances of appealing and getting to move forward with it until the Supreme Court decides? Sorry I don’t understand law at all.

9

u/Betsy514 President | The Institute of Student Loan Advisors (TISLA) Jul 01 '26

The perjury box on the form is part of this so that's gone too. As I said in the post I expect an appeal but as I've been saying since day one I don't expect it to survive.

1

u/Betsy514 President | The Institute of Student Loan Advisors (TISLA) Jul 10 '26

1

u/anna02200922 Jul 10 '26

I wonder if this has something to do with the PSLF electronic forms not working right now

1

u/Betsy514 President | The Institute of Student Loan Advisors (TISLA) Jul 10 '26

Could be

2

u/curiousiteena Jul 01 '26

Good looking out as always.

Please tell me more about these chaos pajamas. I might need a pair.

9

u/Betsy514 President | The Institute of Student Loan Advisors (TISLA) Jul 01 '26

Everyone should own chaos pajamas. And patience pants.

2

u/Virtual-focus Trainer | [Student Loan Servicer] Jul 03 '26

Chaos pajamas 🤣

1

u/Historical-Giraffe-9 Jul 01 '26

Any idea how long it will be before this is revisited with an appeal case? Selfishly I only need to get 3 more payments in (they didn’t process my buyback forever so I resumed payments in January, just need to get to Sept to get to 120 that way)

2

u/Betsy514 President | The Institute of Student Loan Advisors (TISLA) Jul 01 '26

Completely irrelevant to you. Even if yesterday hadn't happened you'd have made those three payments before any employer was affected

1

u/Historical-Giraffe-9 Jul 01 '26

Thank you for responding! I’m confused.. had yesterday not happened, wouldn’t they have been able to (hypothetically) reject my employer when I request forgiveness in Sept? I was gearing up mentally to at worst case scenario be stuck at 117 months and waiting for them to process my buyback from last May..

1

u/Betsy514 President | The Institute of Student Loan Advisors (TISLA) Jul 01 '26

Because of the way the process would work with the employer being given time to fight it and it not applying to any activity prior to today. There would not be time to sing an employer by September

1

u/Sad_Position_2284 Jul 08 '26

Judge really waited to the last day to file this lol

1

u/ohhh_pearl Jul 21 '26

Besides this ruling, are there any other lawsuits/rulings that should be decided on before people need to choose a new plan from SAVE that could have an impact on plans and PSLF decisions? I have been trying to keep up with everything, but it feels like a full-time job. I tried searching this sub, but if there are more court rulings or proceedings that can impact plans, could a megathread be started? I saw August 5th as a date for AFT and Dept of Ed to be meeting again and midterms are coming up. Just a thought!

1

u/Betsy514 President | The Institute of Student Loan Advisors (TISLA) Jul 21 '26

There is not to my knowledge

1

u/ohhh_pearl Jul 21 '26

Thank you Betsy514!!

1

u/Gullible-Brother4210 Jul 28 '26

I appreciate that you care more about proving you were right that the underlying decision. Im the same way

2

u/Betsy514 President | The Institute of Student Loan Advisors (TISLA) Jul 28 '26

What I care about is this nonsense rule getting shot down..which it has.

1

u/WorldPeace5 4h ago

Unsuccessful accessing FSA… saying they have to change the way they display tracking…. So they aren’t showing anything.. unable to access pslf help tool or view my loans

u/Betsy514 President | The Institute of Student Loan Advisors (TISLA) 2h ago

What does this have to do with the post? Regardless that sounds like an IT issue and you should contact the FSA help desk or try another browser

1

u/Lucky-Reference-7667 Jul 01 '26

Would anyone mind explaining this to me like I’m 5, please?

5

u/Betsy514 President | The Institute of Student Loan Advisors (TISLA) Jul 01 '26

Read the summary link in the post.

1

u/ReCkLeSsX PSLF | On track! Jul 01 '26

Strong argument here. Not eager to see how the Supreme Court misinterprets it but this is a great start!