Nonprofit Union Coalition Sign-on Letter Urging Senate to Protect PSLF Program
May 19, 2026
Re: S.J.Res.182
Dear Senator,
On behalf of the Nonprofit Union Coalition within the Department for Professional Employees, AFL-CIO (DPE), I urge you to vote yes on S.J.Res.182, which would use the Congressional Review Act to overturn the Department of Education’s Public Service Loan Forgiveness (PSLF) final rule published on October 31, 2025. If allowed to go into effect on July 1, 2026, the rule has the potential to harm union nonprofit workers who rely on the PSLF program to complete their student loan repayments.
By way of introduction, the DPE Nonprofit Union Coalition consists of national unions representing workers across the nonprofit sector’s 12.7-million-person workforce. Union members working in education, advocacy, direct service, and other fields are united by their commitment to the essential nonprofit work that strengthens communities.
The October 31, 2025 final rule fundamentally alters the PSLF program by enabling the Education Secretary to bar participation by employers based on a vague “substantial illegal purpose” standard. The Education Department’s rulemaking followed a May 7, 2025, executive order (“Restoring Public Service Loan Forgiveness”) directing Secretary McMahon to redefine “public service” under PSLF to align eligibility with the administration’s political priorities. It is not a stretch to see how PSLF eligibility will be used to harass nonprofit organizations viewed unfavorably by the administration, and, in turn, the PSLF program as a whole will become destabilized.
Many union nonprofit workers at 501(c)3 organizations participate in the PSLF program, which Congress established in 2007 with broad bipartisan support. Loan forgiveness is often a necessity for workers in the nonprofit sector who are typically paid less than their private sector counterparts. Changing the program’s rules midway is not just unfair to these working people, it will also likely be economically devastating. Nonprofit workers participating in the PSLF program made career, family, and life decisions with the understanding that completing 10 years of public service and making consistent loan payments will result in the forgiveness of their remaining debt.
Abrupt, partisan changes also will likely hurt the nonprofit sector’s ability to attract and retain a future workforce, which will ultimately impact the delivery of services for the communities that nonprofits serve. Fewer nonprofit services often means a greater strain on federal, state, and local governments.
In closing, no administration should be able to use PSLF eligibility as a tool to bully organizations or workers engaged in constitutionally protected activity. I urge you to shield the bipartisan PSLF program from partisanship and instability by using the CRA to overturn the Department of Education’s October 31, 2025 PSLF final rule.
Please contact me or DPE’s Assistant to the President/Legislative Director, Michael Wasser, at mwasser@dpeaflcio.org if you have any questions.
Sincerely,
Jennifer Dorning, President