Trump Plans Major Changes to Loan Forgiveness Program

The Trump administration is proposing major changes to the Public Service Loan Forgiveness (PSLF) program, which currently forgives student loans for government and nonprofit workers after 10 years of qualifying payments. The new rules would allow the Education Department to disqualify organizations labeled as engaging in 'illegal activities,' specifically referencing immigration, terrorism, and transgender issues. The Education Secretary would have broad authority to determine eligibility, raising concerns about subjective and politically motivated enforcement. Critics warn that the changes could exclude organizations serving vulnerable populations, including hospitals, nonprofits, and state agencies, undermining the program's bipartisan intent. The Education Department is collecting public comments before finalizing the rules, with a decision expected in 2026. Since its inception in 2007, PSLF has benefited over 1 million Americans, including teachers, nurses, and public sector workers.