US President Donald Trump has signed an executive order that limits eligibility for the Public Service Loan Forgiveness (PSLF) program. This program, which helps teachers, healthcare workers, and police officers by forgiving student loans after 10 years of qualifying payments, will now have stricter rules on which organizations can participate.
What is the PSLF Program?
The Public Service Loan Forgiveness (PSLF) program was created to encourage professionals to work in public service roles by offering student loan forgiveness after a decade of service. By December 2024, nearly 2 million borrowers were part of this program.
Trump’s executive order redefines the scope of the PSLF program and introduces restrictions on certain organizations.
Who is Barred Under Trump’s New Order?
The new order states that organizations involved in activities such as:
- Illegal immigration
- Terrorism
- Child abuse
- Discrimination
- Public disruptions
…will be excluded from PSLF eligibility.
Trump’s order also criticizes the program, stating that it:
- Increases tuition costs
- Encourages students to take on unsustainable debt in low-demand majors
- Allows some non-profits to misuse the program
Redefining “Public Service”
A key part of the executive order is that it directs the new Education Secretary, Linda McMahon, to redefine “public service.” This could result in fewer professions or organizations qualifying for PSLF benefits in the future.
Opposition and Legal Challenges
The move has drawn criticism from borrower advocacy groups. Aaron Ament, president of Student Defense, stated that PSLF was created by a bipartisan Congress and that Americans have made career decisions based on its promises.
Many advocacy groups may take legal action against the administration, challenging the order in court.
Trump’s Longstanding Opposition to PSLF
This is not the first time Trump has tried to limit PSLF. During his first term, he proposed eliminating the program altogether. However, this required Congressional approval, which he failed to get.
In contrast, the Biden administration had taken steps to expand PSLF, including a temporary waiver to count previously ineligible payments toward forgiveness, helping borrowers caught in a backlog of PSLF applications.
Trump’s executive order marks a significant shift in student loan forgiveness policy. By restricting eligibility and redefining public service, the administration is reshaping the program’s future. While supporters argue that PSLF needs reform, critics see this as an attack on public service workers. With legal challenges likely, the final impact of this order remains to be seen.
