The Trump administration has proposed changes to the Public Service Loan Forgiveness program that could exclude teachers, social workers, nurses, and others from loan cancellation if their employers are engaged in substantial illegal activities. The new rules specifically target nonprofits and government bodies connected to immigration and transgender issues, classifying certain supportive actions as illegal. The Education Department will have the authority to determine offending organizations. Currently, employees can cancel student loans after ten years of payments, but new restrictions may come into effect by July 2026.
Teachers, social workers, nurses, and other public workers risk losing student loan cancellation if their employer is linked to illegal activities under a new proposal.
The Education Department's plan targets nonprofits and government entities working with immigrants and transgender youth, suggesting that these could be engaged in activities with a "substantial illegal purpose."
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