A new federal proposal threatens to cut off public service workers from the forgiveness of student loans if their employers are found to engage in substantial illegal activities. Targeted are nonprofits or government entities associated with immigrants and transgender youth. The proposed changes, directed by President Trump, include definitions of illegal activity like trafficking, chemical castration of children, and supporting foreign terrorism. Final decisions will rest with the Education Secretary, affecting the current program that offers loan forgiveness after ten years of public service work, which is set to begin implementation in July 2026.
The Education Department has proposed changes to the Public Service Loan Forgiveness program that could exclude public service workers if their employers are involved in activities deemed substantially illegal.
Under the proposal, groups involved in illegal activities like trafficking or financial support for foreign terrorist organizations may lose access to the loan forgiveness program.
The changes, ordered by President Trump, are aimed at stopping taxpayer money from funding organizations perceived as a threat to national security.
The public will have 30 days to provide feedback on the proposal, which is expected to take effect in July 2026 if finalized.
#public-service-loan-forgiveness #student-loans #illegal-activities #trump-administration #education-policy
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