The Trump administration announced a final rule on Thursday to change the Public Service Loan Forgiveness (PSLF) program so workers involved in organizations that engage in “unlawful activities” won’t qualify 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 some teachers, doctors and other public workers could receive.
The Trump administration defined “unlawful activities” as groups that are “abetting illegal immigration” or supporting gender transition for minors.
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“Taxpayer funds should never directly or indirectly subsidize illegal activity. The Public Service Loan Forgiveness program was meant to support Americans who dedicate their careers to public service — not to subsidize organizations that violate the law, whether by harboring illegal immigrants or performing prohibited medical procedures that attempt to transition children away from their biological sex,” said Under Secretary of Education Nicholas Kent.
“With this new rule, the Trump Administration is refocusing the PSLF program to ensure federal benefits go to our Nation’s teachers, first responders, and civil servants who tirelessly serve their communities,” he added.
The new PSLF rule will go into effect next July.
Before, those who worked for the government or a nonprofit employer while making consistent payments on their student loans could get relief.
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Opponents are already sounding the alarm, saying the shift will target organizations that do not fall in line with the Trump administration’s agenda.
And they are gearing up 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 important for our democracy that we support the people who do the hard work to serve our communities. This new rule is a craven attempt to usurp the legislature’s authority in an unconstitutional power grab aimed at punishing people with political views different than the Administration’s. In our democracy, the president does not have the authority to overrule Congress,” Protect Borrowers and Democracy Forward said in a joint statement.
“That’s why we will soon see the Trump-Vance Administration in court,” they added.
