Trump Signs Executive Order Reshaping Public Service Loan Forgiveness Program

The order aims to exclude borrowers working for organizations deemed to have 'substantial illegal purposes,' potentially impacting nonprofit and public-sector employees.

President Donald Trump signed an executive order on March 7 to limit eligibility for the Public Service Loan Forgiveness (PSLF) program, targeting specific nonprofit and public-sector workers.
The order directs the Department of Education to bar loan forgiveness for employees of organizations involved in activities the administration considers illegal or harmful to national interests.
Groups potentially affected include those working in areas like immigration advocacy, protest activism, and gender-affirming care, sparking concerns about ideological tests for PSLF eligibility.
The changes will not take immediate effect, as the order initiates a regulatory process requiring formal rulemaking, with potential implementation years away and subject to legal challenges.
Critics argue the order violates the First Amendment and PSLF's statutory framework, with borrower advocates warning of its chilling effect on public service workers in targeted fields.