
Source: Douglas Rissing / Getty
Updated Aug. 20, 2025, 9:45 A.M.
The Trump administration is proposing a rule that would block some workers from student loan forgiveness if their employers are found to be engaging in illegal activities tied to national security or “undermining American values.”
The draft regulation, announced Monday by the Department of Education, would limit eligibility for the Public Service Loan Forgiveness (PSLF) program. Created in 2007, PSLF allows public employees—such as teachers, police officers and nonprofit workers, to have remaining student debt canceled after 10 years of qualifying payments.
Under the proposal, employees could lose access to the program if their employer is determined to be engaged in certain violations, including aiding terrorism, breaking immigration laws, or what the rule describes as “chemical and surgical castration or mutilation of children.” Borrowers working for ineligible organizations could remain in the program only if they switch to an approved employer.
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Education Under Secretary Nicholas Kent said the change would “restore PSLF to its original purpose—supporting public servants who strengthen their communities, not businesses engaged in illegal activity.”
The move follows a March executive order from President Trump directing the Education Department to overhaul PSLF. The department is taking public comments on the proposed rule through Sept. 17.
Supporters say the rule will protect taxpayer dollars and keep the program focused on genuine public service. Critics argue it grants the department sweeping authority to exclude workers based on political priorities. The Student Borrower Protection Center warned it could be used to deny loan forgiveness to teachers who address slavery in U.S. history classes, health providers offering gender-affirming care, or attorneys representing immigrants facing deportation.
The Education Department maintains the goal is to ensure PSLF benefits are not extended to organizations “engaged in unlawful activity.”
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