Trump Administration Restructures Public Service Loan Forgiveness Program
March 10, 2025, 11:18 am CDT
An executive order signed by President Trump redefines eligibility for student loan forgiveness in public service sectors. (Image from Shutterstock)
Executive Order Overview
In a sweeping shift, an executive order issued on March 7 by President Donald Trump refines the criteria for the Public Service Loan Forgiveness (PSLF) program. The new regulations specifically target employees of “activist organizations,” stipulating that those linked to activities deemed to have a “substantial illegal purpose” will no longer qualify for student loan forgiveness.
Identifying “Illegal Purposes”
The order outlines various actions categorized as illegal, including but not limited to:
- Aiding and abetting violations of immigration law.
- Supporting gender-affirming care for minors, which is referred to in the order as “child abuse.”
- Participating in discrimination against protected classes.
- Supporting terrorism or engaging in violent acts to influence government policy.
- Participating in public disruptions that contravene state tort laws.
This redefinition aims to realign the PSLF program with its foundational goal: to encourage engagement in essential public service professions rather than activism-centered roles.
Implementation and Implications
The executive order tasks the U.S. Department of Education with implementing these guidelines, as reported by major news outlets including the New York Times, NPR, and the Washington Post.
Historically, the PSLF program has faced challenges, particularly during the last administration. Under previous leadership, only about 7,000 borrowers had successfully received debt forgiveness before the Biden administration expanded eligibility to over 1 million borrowers.
Legal Concerns and Future Considerations
Media outlets have suggested that the new order may face delays before being enacted. Education Secretary Linda McMahon might need to initiate a negotiated rulemaking process, inviting public commentary before changes take effect.
Despite the structured processes that usually accompany such changes, the New York Times observed that the Trump administration has often moved forward in ways that challenge conventional legal parameters, potentially leaving borrowers uncertain about their status in this complex program.
Background on PSLF Participation
Under the current guidelines, employers classified as public service organizations can participate in the PSLF program, which allows eligible employees to have their student loans forgiven after ten years of qualifying payments. The American Bar Association (ABA) regained this status following a 2020 lawsuit, previously denied eligibility in 2016.
As the landscape of public service loan forgiveness continues to evolve, stakeholders in the education sector will be closely monitoring how these changes impact potential borrowers and the broader implications for public service employment.
