Trump administration narrows public service loan forgiveness scope, bars groups with ‘substantial illegal purpose’

The US Department of Education has finalized a major overhaul of the Public Service Loan Forgiveness (PSLF) programme, narrowing eligibility to exclude organizations involved in unlawful activities such as aiding illegal immigration or supporting terrorism. Rooted in a March 2025 executive order, the rule—effective July 1, 2026—aims to realign PSLF benefits with lawful, community-focused public service.

Trump administration narrows public service loan forgiveness scope, bars groups with ‘substantial illegal purpose’
The US Department of Education has finalized a major overhaul of the Public Service Loan Forgiveness (PSLF) programme, narrowing eligibility to exclude organizations involved in unlawful activities such as aiding illegal immigration or supporting terrorism. Rooted in a March 2025 executive order, the rule—effective July 1, 2026—aims to realign PSLF benefits with lawful, community-focused public service.