On March 7, President Donald Trump signed an executive order directing the Department of Education (ED) to revise the Public Service Loan Forgiveness (PSLF) program. The order aims to exclude organizations deemed to have a “substantial illegal purpose” from PSFL eligibility.
What We Know
- Eligibility Changes: The ED is tasked with proposing revisions to bar certain organizations from PSLF regulations. The order claims to prevent taxpayer-funded loan forgiveness from benefiting organizations that allegedly undermine national security or American values. Though the language is vague, recent executive actions on immigration, transgender issues, and diversity, equity, and inclusion (DEI) suggest that employers in these areas may face scrutiny and exclusion.
- Congressional Authority: While the executive order initiates regulatory changes, fundamental modifications to the PSLF program require congressional action, as the program was established by law in 2007. Only Congress has the authority to change the laws governing student loan forgiveness.
Resources for Students
- Use the PSLF Help Tool to check eligibility and navigate the application process.
- Consult a financial aid advisor for personalized guidance.
LMU will continue to monitor federal actions and judicial orders and to assess their impact and keep the campus community informed.
