Chicago – March 08, 2025
President Donald Trump has signed an executive action that directs the U.S. Education Department to exclude certain federal student loan borrowers from the Public Service Loan Forgiveness program.
The action says “individuals employed by organizations whose activities have a substantial illegal purpose” will no longer be eligible for the program, known as PSLF. It comes three weeks after Education Secretary Linda McMahon said at her Senate confirmation hearing she would keep the program intact.
Created by Congress, PSLF forgives the federal loan balances of borrowers who work in public sector jobs, including nonprofit organizations, after they have made 10 years of payments while working for their qualifying employer.
The executive action directs McMahon to redefine “public service” in a manner that “excludes organizations that engage in activities that have a substantial illegal purpose.”
Among the activities listed are: support for terrorism; child abuse, including “the chemical and surgical castration or mutilation of children or the trafficking of children to so-called transgender sanctuary”; “aiding and abetting illegal discrimination”; violating federal immigration laws; and state law violations such as “trespassing, disorderly conduct, public nuisance, vandalism, and obstruction of highways.”
Critics say that represents an attack on the free speech rights of borrowers, and on organizations that engage in activities that conflict with the administration’s agenda.
