President Trump Tightens Student Loan Forgiveness

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President Trump signed an executive order redefining “public service” for student loan forgiveness.

This is excluding employees of organizations deemed “anti-American.”

This includes those involved in illegal immigration or public disturbances.

So the eligibility for the Public Service Loan Forgiveness (PSLF) program just narrowed.

Critics argue this could unfairly target certain nonprofits, like those involved in grifting Americans.

The wins keep rolling in.

Though some say that President Trump should just do away with the entire student-loan forgiveness program.

 

Business Insider reports:

President Donald Trump’s latest executive order took on a major student-loan forgiveness program in the administration’s latest attack on workers in government and nonprofits.

On Friday, Trump signed an executive order aimed at limiting eligibility for the Public Service Loan Forgiveness program, which forgives student debt for workers like teachers, healthcare workers and police officers after 10 years of qualifying payments.

The order’s incendiary rhetoric said that organizations engaging in “activities that advance illegal immigration, terrorism, child abuse, discrimination, and public disruptions” would be barred from the loan forgiveness program.

“The PSLF Program also creates perverse incentives that can increase the cost of tuition, can load students in low-need majors with unsustainable debt, and may push students into organizations that hide under the umbrella of a non-profit designation and degrade our national interest,” the order said.

It’s unclear what organizations the Trump administration intends to accuse of these “anti-American” activities. This comes as the administration carries out mass layoffs of federal workers. The order directed Linda McMahon, Trump’s new education secretary, to redefine what “public service” is to align with the administration’s political views. Student-loan borrower advocates say they’ll take the administration to court if they follow through on this order.

According to the latest Education Department data, over 2 million borrowers were enrolled in PSLF with eligible employers as of December 2024.

 

 

But who would be managing the student loans?



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