WASHINGTON, D.C. – President Donald Trump signed an executive order last Friday directing the Secretary of the U.S. Department of Education to exclude borrowers employed at nonprofit organizations from Public Service Loan Forgiveness (PSLF) if they engaged in activities deemed improper or illegal by the administration.
Established by Congress in 2007, PSLF was designed to provide student loan relief to Americans in public service careers, including government, nonprofit organizations and essential public sectors such as education and healthcare.
In response, Nadine Chabrier, senior policy counsel at the Center for Responsible Lending (CRL), issued the following statement:
President Trump's executive order raises serious concerns, as it may interfere with First Amendment freedoms by targeting organizations based on their work. Moreover, by penalizing individuals seeking loan forgiveness for their associations and the expressive conduct of their employers, new rulemakings could infringe on fundamental rights to speech and association.
The executive order also undermines the very purpose of PSLF, which Congress established to encourage careers in public service across a broad range of fields. Stripping PSLF eligibility from nonprofit employees based on the nature of their work will deter skilled professionals from pursuing careers that benefit the public good, weaken critical services for underserved populations and hamper efforts to strengthen vulnerable communities.
Public service should not be subject to government overreach—especially when it comes to ensuring access to healthcare, education and social services.
Additional Background
The Biden administration granted PSLF forgiveness to more than 1 million borrowers, totaling approximately $78.5 billion in canceled debt. This marks a significant increase from the fewer than 7,000 borrowers who had received forgiveness before his administration.
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Press Contact: Vincenza Previte vincenza.previte@responsiblelending.org