The Trump administration's executive order 14325, titled 'Restoring Public Service Loan Forgiveness', poses risks to the Public Service Loan Forgiveness program by introducing ideological tests to determine qualifying nonprofits. This move contrasts the much broader success of the program during the Biden administration, where over one million borrowers received forgiveness compared to fewer than 7,000 under Trump. The PSLF program, intended to promote careers in public service through loan forgiveness after 10 years, has faced significant implementation challenges over the years, with dismal acceptance rates for applicants due to stringent qualifications and disqualifying criteria.
The new executive order sets up an ideological test for nonprofits, jeopardizing the Public Service Loan Forgiveness program for many borrowers.
The Public Service Loan Forgiveness program was designed to encourage professionals to work in public sectors and nonprofits by providing loan forgiveness after ten years of service.
Historically, the PSLF program has encountered major issues, with nearly all applicants denied forgiveness due to strict requirements and eligibility criteria.
During the Biden administration, over one million borrowers benefited from PSLF, contrasting sharply with less than 7,000 during the Trump administration.
Collection
[
|
...
]