Education Department Appeals Court Rulings That Struck Down PSLF Employer Rule

The College Investor

Robert Farrington 

August 27, 2027

The Department of Education (via the Justice Department) filed notices of appeal on August 27, 2026 in both lawsuits that struck down the Department of Education’s PSLF employer eligibility rule. The government is taking National Council of Nonprofits v. McMahon to the First Circuit Court of Appeals and Robert F. Kennedy Center for Justice and Human Rights v. McMahon to the D.C. Circuit, filing just before the government’s 60-day appeal window closed.

Both appeals target rulings issued June 30, 2026 — one day before the PSLF Employer rule was scheduled to take effect. In Massachusetts, Judge Myong J. Joun’s 68-page decision (PDF File) vacated the rule as contrary to law, arbitrary and capricious, and a violation of the First Amendment. That decision also resolved the companion case brought by 22 states and the District of Columbia. The same day, the D.C. district court granted summary judgment to the RFK Center and co-plaintiff nonprofits in the parallel case.

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