The Trump administration released a final rule on Thursday that limits who can participate in a federal government student loan forgiveness program, making it easier to squeeze out employers who engage in activities that it deems have “a significant illegal purpose.”
These employers could include, for example, organizations that work with undocumented immigrants or provide gender-specific care for children under 19, among other things.
The Trump administration argues that taxpayer dollars should not subsidize illegal activities. But critics of the new rule say it gives the government broad tools to politicize the program and target groups that do not align with its values.
The rule complies with an executive order President Trump issued in March. Commenting on the new rule, Education Department Undersecretary Nicholas Kent said in a statement: “The Trump Administration is realigning the PSLF program to ensure federal benefits benefit our nation's teachers, first responders, and public servants who tirelessly serve their communities.”
The program, known as Public Service Loan Forgiveness (PSLF), was created by Congress in 2007 and is open to government and nonprofit employees such as school teachers, public defenders and librarians. After they make 120 qualifying payments under an income-driven repayment plan — which requires at least 10 years of service in qualifying jobs — the remaining balance is wiped out.
Many officers have put their financial futures at risk, and expulsion could potentially upend their finances. More than a million people have received tens of billions of dollars in loan forgiveness under the program.
Thank you for your patience as we review access. If you are in reading mode, please exit and log in to your Times account or subscribe to the entire Times edition.
Thank you for your patience as we review access.
Already a subscriber? Log in.
Want the entire Times? Subscribe.