The National Council of Nonprofits (NCN) and a coalition of other nonprofits, associations, unions, and local government filed a lawsuit today challenging the Administration’s final rule to overhaul the Public Service Loan Forgiveness (PSLF) program by unlawfully limiting which charitable nonprofits qualify as “eligible employers.”

The lawsuit – National Council of Nonprofits et. al. v. McMahon – is asking the courts to strike down the final rule and safeguard the PSLF program as Congress intended: a bipartisan promise to those who choose to serve their communities, regardless of politics.

As NCN president and CEO, Diane Yentel stated in their press statement, “The administration’s new regulation unlawfully politicizes and undermines a successful, bipartisan program, harming nonprofits and the millions of people who rely on them every day. PSLF has a proven track record of helping local nonprofits recruit and retain the workforce they need to provide essential services to the American people. Contrary to law, the regulation allows current and future administrations to change PSLF eligibility according to their priorities or ideology, inviting government overreach and abuse and creating instability that will undermine the program’s success. This must not stand.”

In addition to NCN, plaintiffs include nonprofits: Amica Center for Immigrant Rights, Coalition for Humane Immigrant Rights, Legal Aid DC, Oasis Legal Services, associations and unions: National Association of Social Workers, AFT, American Federation of State, County, and Municipal Employees, and National Education Association, and local government: City of Albuquerque, City of Boston, City of Chicago, City and County of San Francisco, County of Santa Clara. The coalition is represented by Protect Borrowers and Democracy Forward in this matter; the County of Santa Clara and City and County of San Francisco represent themselves.

You can read NCN’s press statement on the lawsuit.