WASHINGTON (AP) – President Donald Trump is reshaping Student Loans Cancel the program to make certain fears a tool for political retribution targeting organizations serving immigrants and transgender youth.
Education department is preparing for major repairs Public Service Loan Forgiveness The program will benefit from organizations participating in “illegal activities” and allow the U.S. Secretary of Education to decide which should be disqualified. The draft proposal released by the department includes the definition of illegal activities centered on immigration, terrorism and transgender issues.
Several advocates invited the draft proposal to raise concerns that would give departmental subjective authority to decide whether the organization engages in any illegal activities that could be used to remove the entire hospital system or state power from the program.
“For me, it’s definitely a political motivation and maybe it will be used as a tool for political punishment,” said Betsy Mayotte, another advocate, president of the Student Loan Advisors Association, part of a rulemaking process.
Plans can stop many people from getting loans
more than 1 million Americans Loans were cancelled through the program, including teachers, nurses, firefighters and others.
Congress created the program in 2007 to encourage college graduates to work in the public sector. When working for any level of government, the borrower will cancel all remaining debts after paying 120 loan payments per month. Currently, if nonprofits focus on certain areas, including public interest law, public health or education.
Currently, the federal database of qualified employers includes some databases that provide grants to transgender youth and their families so they can travel to states Gender affirmation allowed Care for minors. It also includes some people who provide legal services to immigrants, regardless of their legal status.
trump card Orderly changes In the plan in March, it was announced that it “misleads taxes into radical organizations”, which hurt national security. He directed the education sector to remove organizations related to illegal activities and to pick out organizations that work with immigrants or trans youth or people who support terrorism, a label he often applies to pro-Palestinian activists.
His plan has the potential to prevent a large number of student loan borrowers from canceling. Those who work for unqualified employers will no longer be able to cancel the cancellation, effectively forcing them to find a new job or give up their loans.
Hospitals, schools and nonprofits may be at risk
The proposal’s definition of illegal activities largely reflects what Trump elaborates on. They include “help or teaching togong” that violates federal immigration laws and support any group designated as a foreign terrorist organization. The list also includes violations of the 1964 Civil Rights Act, which Trump officials have cited as roots Diversity, equity and inclusion policy.
What is also considered illegal is “chemical and surgical casting or dismemberment of children engaged in violation of federal or state laws.” It says that includes the use of hormone therapy or drugs that delay puberty. It defines children as children under the age of 19.
This raises concerns that the entire hospital system may become unqualified if a department provides certain care for trans youth. Likewise, the federal government may benefit from limiting working with federal immigration officials across the city.
“I can see the whole city and the entire civil structure,” said Alyssa Dobson, director of financial aid at Slippery Rock University and member of the rulemaking team. It could also provide another tool for management. Movement against universities She said it had something to do with the president’s politics.
“Unfortunately, this may allow them to pursue bad institutions further,” she said.
The department’s proposal will consider the court judgment and other legal findings when determining whether an employer should be considered unqualified. But it leaves room for at least a certain degree of subjectivity, giving the Minister of Education the right to exclude organizations without a conviction or resolution.
Ambiguity in the definition of illegal activities that advocates consider
PeopleJoy CEO Emeka Oguh said the policy could exacerbate the shortage of doctors and nurses if it is widely used. He is a member of the group and he encourages the department to use power through surgery, not the entire hospital.
OGUH said department officials were unable to provide examples of organizations that might have been found to be involved in illegal activities. He said when forced by details, officials said illegal treatment of immigrants in the country would not be considered illegal. What is less certain is how the department handles teachers or school teaching courses that are considered Dei.
“There’s a lot of ambiguity there,” Og said.
Some others have proposed a provision that requires employers to prove that they do not engage in illegal activities. Failure to obtain certification can also render the organization unqualified, increasing the risk that paperwork problems may harm a large number of borrowers to cancel.
The department said changes were made based on the group’s concerns. Ultimately, it can shape proposals as it pleases. The agency is now preparing a formal proposal that will be held in a public comment period before finalization. It is expected to take effect in July 2026.
Last week, the Education Department thanked experts and said “helped fulfill one of President Trump’s commitments to ensure that the PSLF does not subsidize organizations that violate the law.”
