From the NASW Legal Defense Fund:
The National Association of Social Workers (NASW) applauds the federal court decision in National Council of Nonprofits et al. v. McMahon et al., which struck down a Department of Education rule that would have unlawfully restricted access to the Public Service Loan Forgiveness (PSLF) program.
NASW joined this litigation as a plaintiff alongside the National Council of Nonprofits, American Federation of Teachers, AFSCME, the National Education Association, and numerous state and local governments and nonprofit organizations because we believed the rule posed a direct threat to the financial security of social workers and the integrity of the public service workforce.
The PSLF program was created by Congress to encourage individuals to pursue careers in public service by relieving the burden of student loan debt, a burden that falls particularly hard on social workers, who undergo extensive professional training and often spend their careers in demanding, roles serving vulnerable communities. The rule challenged in this case would have allowed the federal government to strip PSLF eligibility from employers based on the nature of their work, threatening the loan forgiveness that countless social workers have been counting on and working toward for years.
The court agreed that the rule was unlawful. It found that Congress spoke clearly on who qualifies for PSLF, that the Department of Education exceeded its authority by attempting to add restrictions Congress never authorized, and that the rule was arbitrary, vague, and violated the First Amendment by targeting organizations based on their viewpoints and the communities they serve.
This decision is a victory not only for NASW’s members, but for the entire public service workforce, many of whom choose service over higher-paying private sector careers. It affirms that the government cannot use a beloved public benefit as a tool to punish organizations for the work they do and the people they serve.
NASW will continue to advocate vigorously for the rights of social workers and the communities they serve and will remain vigilant against any further efforts to undermine the public service commitments Congress has made to this workforce.
Learn more about the NASW Legal Defense Fund
UPDATE: On August 27, 2026, the Department of Education appealed the decision. The rule remains vacated while the appeal proceeds.
