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Some workers would be excluded from student loan forgiveness program for ‘illegal’ activity
The Department of Education aims to exclude employers engaged in substantial illegal activities from PSLF, affecting millions of borrowers while expecting fewer than 10 organizations to lose eligibility annually.
- Teachers, social workers, nurses, and other public workers may be excluded from a popular student loan cancellation program if their employer has a 'substantial illegal purpose,' according to a new federal proposal released by the Department of Education.
- The proposal grants the education secretary the authority to decide exclusions based on illegal activity, including trafficking, illegal immigration, and supporting terrorism, as mentioned in the proposal.
- Critics argue that the new policy will turn loan forgiveness into a method of political retribution and have labeled it an illegal attempt to weaponize student loan cancellation.
- President Donald Trump stated in March that the changes are necessary as the program was allegedly directing taxpayer money to 'activist organizations' that threaten national security and do not serve the public.
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Student Loan Update: Trump Plan Could Cut Off Forgiveness for Some Workers
Donald Trump ordered the changes in March, accusing PSLF of sending taxpayer funds to "activist organizations" he considers a threat to national security. The public will have 30 days to comment before the proposal can be finalized, with implementation slated for July 2026.The Education Department predicts fewer than 10 employers would be barred annually and says it does not expect a "significant reduction" in the share of borrowers receiving fo…
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Some workers would be excluded from student loan forgiveness program for 'illegal' activity
The Trump administration has proposed changes to the Public Service Loan Forgiveness program that could exclude teachers, social workers and nurses if their employers engage in activities deemed illegal.
·United States
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Coverage Details
Total News Sources90
Leaning Left9Leaning Right8Center60Last UpdatedBias Distribution78% Center
Bias Distribution
- 78% of the sources are Center
78% Center
12%
C 78%
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