US EditionSome 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 cut from a student loan forgiveness program if their employer is found engaged in activities with a 'substantial illegal purpose' according to a new federal proposal.
- The proposal gives the education secretary the authority to decide on exclusions from the program, which encourages graduates to work in public service fields.
- Illegal activities mentioned include trafficking children, illegal immigration, and supporting foreign terrorist organizations, as noted in the proposal.
- Critics argue that the proposal is an illegal attempt to weaponize student loan cancellation.
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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 Sources92
Leaning Left9Leaning Right8Center62Last UpdatedBias Distribution78% Center
Bias Distribution
- 78% of the sources are Center
78% Center
11%
C 78%
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