"A new rule regarding the Public Service Loan Forgiveness (PSLF) program issued by Donald Trump's administration through the US Department of Education puts at risk the program that allows for nonprofit and public sector works to have loan balances forgiven after making 120 monthly payments. The new rule takes effect July 1, 2026. Created by Congress in 2007, the PSLF program has provided student loan relief to over one million public sector and nonprofit worker borrowers."
"In essence, the new Trump administration rule creates a political ideology litmus test as to whether a nonprofit serves the public's interest or not. Among the prohibited categories is "aiding or abetting violations of federal immigration laws," a vague designation that could exclude plenty immigration advocacy. Broadly speaking, the new rule gives the Secretary of Education the power to exclude organizations from being considered as qualified employers under the PSLF program."
"...supporting terrorism or engaging in violence for the purpose of obstructing or influencing Federal Government policy, engaging in the chemical and surgical castration or mutilation of children in violation of Federal or state law, engaging in the trafficking of children to another State for purposes of emancipation from their lawful parents in violation of Federal or State law, engaging in a pattern of aiding and abetting illegal discrimination,"
A new rule from the Department of Education takes effect July 1, 2026 and changes PSLF eligibility rules. The rule grants the Secretary of Education authority to exclude organizations from being qualified employers for PSLF if they engage in a list of prohibited activities. The prohibited categories include aiding or abetting violations of federal immigration laws and other vague designations such as supporting terrorism, violent obstruction of federal policy, chemical or surgical castration or mutilation of children, interstate trafficking of children, aiding illegal discrimination, and patterns of violating state laws. Over one million borrowers previously received more than $70 billion in PSLF discharges. Borrowers employed by excluded nonprofits must leave PSLF or leave their jobs.
Read at Non Profit News | Nonprofit Quarterly
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