A program that’s helped more than a million student loan borrowers and public servants may soon be reshaped.
Congress created the Public Service Loan Forgiveness program to encourage college graduates to go into the public sector.
It’s allowed people like nurses, teachers and government employees to have their loans canceled as long as they’ve made payments for 10 years and work for eligible employers.
Back in March, President Trump ordered changes to the program. Now, a draft of the proposal has just been released.
It aims to strip PSLF eligibility from organizations involved in what the Trump administration calls “illegal activities.”
Critics warn that could include employers that work on immigration and transgender health care, or have diversity policies.
The Trump administration says employees of organizations found to violate laws could lose the chance to have their loans forgiven.
“This is not going to be a retroactive regulation, but going forward from the moment the employer is deemed ineligible by the Department of Education, future months will not count towards PSLF,” said Betsy Mayotte, the president of the Institute of Student Loan Advisors.
Critics of the proposal also say this could give the Education Department the power to end eligibility for organizations that it disagrees with, like hospital systems or state governments.
Nothing has changed yet, and he proposal will soon be open for public comment.
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