Voice of America
08 Mar 2025, 15:34 GMT+10
President Donald Trump is ordering changes to the Public Service Loan Forgiveness program that would disqualify workers of nonprofit groups deemed to have engaged in "improper" activities.
An executive order signed Friday directs the Education Department to modify the program to deny loan relief to some borrowers. It would exclude loan forgiveness to people whose work is tied to illegal immigration, foreign terrorist groups or other illegal activity.
Congress created the program in 2007 to encourage careers in the government or nonprofit groups. It offers to cancel any remaining student debt after borrowers make 10 years of payments while working in public service. It’s open to government workers, teachers, police, religious pastors and certain nonprofit employees, among others.
More than 2 million Americans have eligible employment and open student loans, according to December data from the Education Department.
At her Senate confirmation hearing, Education Secretary Linda McMahon pledged to continue Public Service Loan Forgiveness as ordered by Congress. "That’s the law," she said in response to questions from Sen. Tim Kaine, D-Va.
Under current rules, nonprofits are eligible if they focus on certain areas including public interest law, public health or education.
Trump’s order appears to target those who work in certain fields at odds with his political agenda, including immigration. Advocates have gone to court to defend the program in the past, and Trump’s action is almost certain to face legal challenges. It drew quick backlash from advocates.
"Threatening to punish hardworking Americans for their employers' perceived political views is about as flagrant a violation of the First Amendment as you can imagine," said Aaron Ament, president of the National Student Legal Defense Network.
Updating eligibility rules typically requires the Education Department to go through a lengthy federal rulemaking process. Any new regulation that started this year would usually not take effect until 2027.
The forgiveness program has been the subject of a political tug of war since Trump’s first term, when borrowers first started hitting the 10-year finish line. The vast majority who applied for relief in 2017 were rejected because they were found to have enrolled in ineligible payment plans or failed to meet other criteria.
An investigation by a federal watchdog group concluded the Education Department had failed to make the program's eligibility rules clear. Under President Joe Biden, the Education Department loosened the program’s rules through a federal rulemaking process, expanding eligibility to people who would have been denied previously.
In its final weeks, the Biden administration announced it had granted relief to more than 1 million people through the program, up from 7,000 who were granted cancellation during Trump’s first term.
The Biden administration changes were assailed by Republican lawmakers who said only Congress had the authority to change the program’s rules. Biden also pushed for broader student loan cancellation but was blocked by the Supreme Court and by repeated legal challenges from Republican-led states.
Republicans have been sharply opposed to student loan cancellation, saying it unfairly passes the cost to taxpayers who already repaid their loans or didn't go to college.
Get a daily dose of Russia Herald news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Russia Herald.
More InformationPONTEDERA, Italy: Italy's Piaggio, the maker of the iconic Vespa scooter, reported record-high core profit margins for 2024 despite...
NEW YORK, New York - U.S. stocks fell sharply at the open and stayed in the red for much of the day Friday, however as the day wore...
NEW YORK, New York - The U.S. dollar continued to come under pressure Friday with President Donald Trump's flip flops on trade tariffs,...
SEATTLE, Washington: Nordstrom delivered stronger-than-expected holiday-quarter sales and announced a leadership shakeup, with Chief...
MILAN, Italy: Prada CEO Andrea Guerra suggested this week that the Italian luxury brand is keeping its options open regarding potential...
OSLO/COPENHAGEN: Tesla is experiencing a sharp drop in sales across Scandinavia and France as shifting consumer sentiment and an aging...
Islamabad [Pakistan], March 8 (ANI): The Pakistan government has asked Afghan nationals living in Pakistan to leave the country by...
OP Jindal University Sonipat (Haryana) [India], March 8: To mark the International Women's Day (IWD 2025) O.P. Jindal Global University...
Dubai [UAE], March 8 (ANI): 25 years after their first ICC title win following a win over India in the ICC Knockout 2000 final, New...
WASHINGTON — President Donald Trump is ordering changes to the Public Service Loan Forgiveness program that would disqualify workers...
WASHINGTON — Calls to revoke China’s Permanent Normal Trade Relations (PNTR) status have grown louder in recent months. In a memo...
Kyiv [Ukraine], March 8 (ANI): Ukraine President Volodymyr Zelenskyy said that the country is 'continuously' working with its partners,...