Copyright The New York Times
The Trump administration released a final rule on Thursday that restricted who could participate in a student loan forgiveness program for public servants, making it easier to push out employers who engage in activities that it deems to have “a substantial illegal purpose.” Those employers could include organizations that work with undocumented immigrants, for example, or provide gender-affirming care to children under the age of 19, among others. The Trump administration argues that taxpayer funds should not subsidize illegal activity, but critics of the new rule say it gives the government broad tools to politicize the program and target groups that do not align with its values. The rule fulfills an executive order that President Trump issued in March. On the new rule, Nicholas Kent, under secretary of the Education Department, said in a statement: “The Trump administration is refocusing the P.S.L.F. program to ensure federal benefits go to our nation’s teachers, first responders and civil servants who tirelessly serve their communities.” The program known as Public Service Loan Forgiveness, or P.S.L.F., was created by Congress in 2007 and is open to government and nonprofit employees like schoolteachers, public defenders and librarians. After making 120 qualifying payments in an income-driven repayment plan — which requires at least 10 years of service in qualifying jobs — any remaining balance is wiped out. Many public servants have staked their financial futures on the program, and being disqualified could potentially upend their finances. More than one million people have received tens of billions of dollars in loan forgiveness under the program. Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times. Thank you for your patience while we verify access. Already a subscriber? Log in. Want all of The Times? Subscribe.
