A federal judge has blocked the Federal administration from enforcing changes to the Public Service Loan Forgiveness program that would have allowed the U.S. Department of Education to exclude certain government and nonprofit employers based on their activities or policies, according to attorneys representing the plaintiffs. 

The ruling came in National Council of Nonprofits et al. v. McMahon, a lawsuit filed by a coalition of cities, labor unions, and nonprofit organizations challenging the policy, according to the San Francisco City Attorney’s Office. 

The plaintiffs argued the changes unlawfully rewrote a congressionally authorized program designed to provide student loan forgiveness for eligible public service workers. 

“This victory preserves a financial lifeline for public service workers, and it ensures the Public Service Loan Forgiveness program can continue to function as Congress intended,” San Francisco City Attorney David Chiu said. 

The Public Service Loan Forgiveness program forgives eligible federal student loans for borrowers who work in qualifying public service jobs and meet payment requirements.  

The court’s order temporarily halts enforcement of the challenged policy while the case proceeds.