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Trump's Executive Order Targets Public Service Loan Forgiveness Eligibility

The order seeks to restrict forgiveness for borrowers working for certain organizations, raising legal and financial concerns for millions of public service workers.

Activists and students protest in front of the Supreme Court during a rally for student debt cancellation in Washington, D.C., on February 28, 2023.
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US President Donald Trump speaks during an executive order signing ceremony in the Oval Office of the White House in Washington, DC, US, on Thursday, March 6, 2025.
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Overview

  • President Trump signed an executive order limiting Public Service Loan Forgiveness (PSLF) eligibility based on the activities of borrowers' employers, targeting organizations deemed harmful to national interests.
  • The order identifies broad categories of disqualifying activities, including violations of immigration law, support for gender-affirming healthcare for transgender youth, and certain civil rights or DEI initiatives, sparking concerns of ideological targeting.
  • Legal experts question the order's authority, noting that PSLF eligibility is governed by statute, which may prevent sweeping changes through executive action or regulatory revisions.
  • Borrower advocacy groups have criticized the order as illegal and vowed to pursue litigation, arguing it undermines the financial stability of public service workers and violates constitutional protections.
  • The Department of Education is also grappling with broader turmoil, including court rulings freezing income-driven repayment plans and administrative challenges, leaving millions of borrowers uncertain about their financial futures.