The President of the United States has issued an order aimed at revising the Public Service Loan Forgiveness (PSLF) Program. Established by Congress in 2007, the PSLF Program was designed to encourage Americans to pursue careers in public service by forgiving their remaining student loans after ten years of service and payments.
According to the President, "the prior administration abused the PSLF Program through a waiver process, using taxpayer funds to pay off loans for employees still years away from the statutorily required number of payments." The President criticized how tax dollars have been directed towards organizations that do not serve public interest and may harm national security.
The President stated that it is a priority to end "the subsidization of illegal activities," which include illegal immigration, human smuggling, child trafficking, and other actions threatening U.S. security. As part of this initiative, individuals working for organizations with substantial illegal purposes will be deemed ineligible for loan forgiveness.
To address these concerns, the Secretary of Education is tasked with proposing changes to 34 C.F.R. 685.219 concerning the definition of “public service.” These revisions will exclude organizations involved in illegal activities such as aiding violations of federal immigration laws or supporting terrorism.
Other prohibited activities under consideration include child abuse and discrimination patterns. The proposed changes aim to ensure that only those engaged in legitimate public service are eligible for loan forgiveness.
The order also specifies that nothing within it should affect existing legal authority or create enforceable rights against the United States or its entities.
