US EditionPublic Service Loan Forgiveness Could Become Trump Retribution Tool, Advocates Fear
UNITED STATES, JUL 7 – The Department of Education would gain authority to disqualify organizations involved in illegal acts from loan forgiveness eligibility under the proposed Public Service Loan Forgiveness changes.
- In March, President Donald Trump's administration announced major changes to the student loan cancellation initiative aimed at limiting eligibility for loan forgiveness to exclude certain organizations.
- The changes aim to exclude organizations involved in illegal activities such as aiding immigration violations, supporting terrorism, or providing gender-affirming care to minors.
- The Education Department released a draft proposal outlining new criteria empowering the secretary to disqualify organizations without requiring proof of conviction or settlement.
- Betsy Mayotte criticized the proposal as driven by political agendas and suggested it might be exploited to impose political retribution, while Alyssa Dobson expressed concern that it could unfairly affect whole cities and various public institutions.
- The formal changes, expected to be implemented in July 2026, may create uncertainty for individuals relying on their employers' qualification to receive loan forgiveness.
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13 Articles
Trump Seeking Changes to a Major Student Loan Relief Program
Tens of thousands of nonprofit employees could be affected by the Trump Administration’s efforts to narrow a student loan cancellation program that aids public service workers. Employees at organizations that do work related to issues including immigration and gender-affirming-care would be at risk of losing eligibility for the Public Service Loan Forgiveness (PSLF) program, which has wiped the student loan debts of hundreds of thousands of gove…
louisianafirstnews.com
Public Service Loan Forgiveness could become Trump retribution tool, advocates fear
WASHINGTON (AP) — President Donald Trump is reshaping a student loan cancellation program into what some fear will become a tool for political retribution, taking aim at organizations that serve immigrants and transgender youth. Public Service Loan Forgiveness allows government employees, such as teachers and firefighters, plus many who work for nonprofits, to have their student loans canceled after they've made payments for 10 years. The Educat…
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