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New Trump administration rule bars student loan relief for public workers tied to ‘illegal’ activity

  • Thursday, the Trump administration finalized rules giving the Education Department expanded power to bar employers from the Public Service Loan Forgiveness program, a major reworking of a program that has canceled loans for more than 1 million Americans.
  • The Trump administration says the rule is necessary to prevent taxpayer funds from going to lawbreakers, targeting organizations that work with immigrants and transgender youth, with sanctions starting July 1, 2026.
  • The education secretary may independently determine an employer should be barred using a 'preponderance of the evidence' standard, and employers can be expelled after a state or federal court ruling or legal settlement admitting guilt.
  • Those excluded can seek reentry after 10 years or sooner via a secretary-approved corrective action plan, and employers would be notified and allowed to respond to the department's findings.
  • Critics say the rule hands the department broad discretion that could enable political targeting and permits exclusions for 'chemical castration'—defined as hormone therapy or drugs that delay puberty—in 27 states.
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Breitbart broke the news in United States on Thursday, October 30, 2025.
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