The Education Department is set to revise the Public Service Loan Forgiveness program, aiming to exclude organizations engaged in illegal activities. This proposal includes controversial definitions that could target groups assisting immigrants and transgender youth. Advocates express concern over the subjective power granted to the U.S. education secretary to determine eligibility, which could result in widespread impacts, including disqualifying entire hospital systems or state governments. The program, designed to encourage public sector work, has previously facilitated loan cancellation for over 1 million individuals in various public service roles.
The Education Department is preparing an overhaul of the Public Service Loan Forgiveness program that would strip the benefit from organizations involved in illegal activities.
Several advocates raised concerns that the proposed plan could give the department subjective authority to decide if an organization is engaged in illegal activity.
If implemented, the plan could potentially block many individuals, including those in public service roles, from receiving loan relief.
The program, created in 2007, aims to encourage college graduates to work in the public sector and promises to cancel debt after specific payment conditions.
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