The Trump administration announced a final rule Thursday to change the Public Service Loan Forgiveness (PSLF) program so that employees at organizations involved in “unlawful activities” will not be eligible for student loan relief.
While the administration says the move is to protect taxpayers, opponents worry the government will go after certain groups for political motivations and limit the relief available to some teachers, doctors and other public employees.
The Trump administration has defined “unlawful activities” as groups that are “promoting illegal immigration” or supporting gender reassignment for minors.
“Taxpayer funds should never directly or indirectly subsidize illegal activity. The purpose of the Public Service Loan Forgiveness Program was to support Americans who dedicate their careers to public service – not to subsidize organizations that violate the law, whether harboring illegal immigrants or performing prohibited medical procedures that attempt to remove children from their biological sex,” said Under Secretary of Education Nicholas Kent.
He said, “With this new rule, the Trump Administration is refocusing the PSLF program to ensure that federal benefits go to our nation’s teachers, first responders, and civil servants who tirelessly serve their communities.”
The new PSLF rules will come into effect from next July.
Previously, people who worked for the government or a nonprofit employer while making consistent payments on their student loans could get relief.
Opponents are already sounding alarm bells, saying the change will target organizations that don’t align with the Trump administration’s agenda.
And they are preparing for legal action.
“This is a direct and unlawful attack on nurses, teachers, first responders and public service workers across the country. Congress created the Public Service Loan Forgiveness (PSLF) program because it is vital to our democracy that we support those who work hard to serve our communities. This new rule is a blatant attempt to usurp the legislature’s authority in an unconstitutional power grab intended to punish people with political views that differ from the administration. In our democracy, the President does not have the authority to overrule Congress,” Protect Borrowers and Democracy Forward said in a joint statement.
“So we will soon see the Trump-Vance administration in court,” he said.
