No Free Loans for Smugglers in Public Service Overhaul
Published Date: 3/12/2025
Presidential Document
Summary
The government is fixing the Public Service Loan Forgiveness program to make sure only people working for truly good, legal public service jobs get their student loans forgiven. If you work for groups involved in illegal activities, like human smuggling or breaking immigration laws, you won’t qualify anymore. These changes start soon and aim to protect taxpayers and national security while keeping the program fair and focused on real public service heroes.
Analyzed Economic Effects
1 provisions identified: 0 benefits, 1 costs, 0 mixed.
PSLF Ineligibility for Illegal-Activity Employers
If you have federal student loans and work in public service, this order directs the Secretary of Education to propose changes to 34 CFR 685.219 so that employees of organizations with a "substantial illegal purpose" are not eligible for Public Service Loan Forgiveness (PSLF). The order lists specific excluded activities, including aiding or abetting violations of 8 U.S.C. 1325 or other federal immigration laws; supporting terrorism (including facilitating funding or operations of cartels designated consistent with 8 U.S.C. 1189); child abuse and trafficking (including chemical or surgical castration of children and trafficking to certain States); patterns of aiding and abetting illegal discrimination; and patterns of violating State tort laws such as trespassing, disorderly conduct, vandalism, public nuisance, and obstruction of highways. The PSLF program normally forgives remaining loans after 10 years of qualifying service and 10 years of minimum payments; this order was signed March 7, 2025.
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