Student loan support
California's PSLF Safety Net for Legal Aid Lawyers
The California Legislature has created a new safety net to protect legal aid and nonprofit immigration attorneys participating in the federal Public Service Loan Forgiveness (PSLF) program.
$0
cost to participating organizations or eligible attorneys
None
application or advance enrollment required
2030
funded by California through June 2030
120
qualifying PSLF payments, after which eligible payments can be reimbursed
About the program
How the Safety Net works
Administered by the California Access to Justice Commission (CalATJ), the California PSLF Safety Net is designed to help attorneys continue serving their communities if a future federal regulation causes their nonprofit employer to lose PSLF eligibility.
If that occurs, attorneys at affected organizations could stop receiving credit toward the 120 qualifying payments required for federal loan forgiveness, even if they continue working full-time in public service. Under the California PSLF Safety Net, eligible attorneys can be reimbursed for the federal student loan payments they make after reaching what would have been their 120th qualifying PSLF payment—covering loan payments that otherwise would have been forgiven.
The program was created to reduce the risk that attorneys will leave, or decide not to join, legal aid organizations because of uncertainty surrounding federal PSLF eligibility rules.
In June 2026, a federal court blocked the proposed federal regulation that prompted concern, but the decision may be stayed and is expected to be appealed. The California PSLF Safety Net ensures that attorneys can continue serving vulnerable Californians even if the regulation ultimately takes effect.
The program is available to nonprofit organizations that provide legal assistance to vulnerable Californians and is not limited to organizations that receive IOLTA funding through the State Bar of California. There is no application or advance enrollment requirement, and there is no cost to participating organizations or eligible attorneys.
California has funded the program through June 2030.
FAQ
PSLF Safety Net frequently asked questions
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The California Legislature, in the 2026 Budget Act, created a new safety net to help legal aid lawyers if the Secretary of Education uses federal regulation, amending 34 C.F.R. § 685.219(b), to declare their nonprofit employer ineligible for Public Service Loan Forgiveness (PSLF). If that happens, the California Access to Justice Commission (CalATJ) can reimburse eligible lawyers who continue working in legal aid for the monthly federal student loan payments that would have been forgiven except for the new regulation.
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The safety net was created because the new regulation creates uncertainty for current and prospective legal aid lawyers about whether working for a nonprofit that engages in work the Secretary of Education disapproves might block eligibility for PSLF. Although a federal court has blocked the regulation for now, that decision may be subject to a stay, and will be appealed. California created this program so legal aid lawyers can continue serving vulnerable communities without worrying about losing the value of years spent working toward PSLF.
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No. PSLF still exists. The safety net only applies if a nonprofit legal services organization loses PSLF eligibility under the new federal regulation.
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The Safety Net is intended for lawyers who:
Work for an eligible California nonprofit providing free legal services to vulnerable Californians.
Have eligible federal student loans.
Lose the ability to earn qualifying PSLF credit because their employer is no longer eligible for PSLF due to future federal action.
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If needed, after an attorney has reached what would have been their 120th qualifying PSLF payment, the Safety Net reimburses eligible lawyers for monthly federal student loan payments that otherwise would have been forgiven through Public Service Loan Forgiveness, while they continue working for an affected nonprofit.
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No. This program does not forgive your federal student loans. Instead, it will reimburse for monthly federal student loan payments that would have been forgiven except for the new regulation. The safety net is intended to bridge the period of uncertainty created by the new regulation so lawyers can continue serving vulnerable Californians while court challenges to the regulation proceed, or until there is a different Secretary of Education under a different President. California has already appropriated funding through June 2030.
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The safety net has been funded by the State of California and is ready if it becomes necessary.
If the federal regulation never takes effect, or if your employer remains PSLF eligible, you will simply continue working toward federal PSLF as usual.
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No. There is no cost to eligible legal services organizations, and organizations do not need to contribute funding for this safety net.
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No. Unlike CalATJ's traditional LRAP, this safety net does not require employer participation or contributions.
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Yes. Any nonprofit provider of free legal help to vulnerable Californians including low-income individuals, seniors, veterans, and immigrants may be covered if the nonprofit loses PSLF eligibility under the new federal regulation. Receiving IOLTA funding is not a requirement.
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The State of California has already appropriated funding for the safety net through June 2030.
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CalATJ has designed the reimbursement method so that the reimbursements are intended to be excluded from recipients' taxable income.
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If the regulation never takes effect, attorneys should simply continue earning credit toward PSLF under the existing federal program. The safety net is there only if it becomes necessary.
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Many law students are able to choose a legal aid career only because PSLF helps make public service financially possible.
California created this safety net to help ensure that uncertainty about the federal regulation does not discourage future legal aid attorneys from entering public service.
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The PSLF Safety Net is separate from CalATJ's existing Loan Repayment Assistance Program (LRAP).
Some attorneys may qualify for LRAP, the PSLF Safety Net, or both, depending on their circumstances. Additional guidance will be provided if the safety net becomes necessary.
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The safety net is intended for lawyers working at eligible nonprofit legal services organizations that would lose PSLF eligibility under the federal regulation.