Restoring Public Service Loan Forgiveness
Limits Loan Forgiveness for Workers at Organizations Engaging in Illegal Activity
What it does
The Secretary of Education must propose revisions to the Public Service Loan Forgiveness rule to exclude employees of organizations with substantial illegal purposes.
Real-world impact
- Workers at nonprofits accused of illegal activity may lose loan forgiveness eligibility.
- Secretary of Education will rewrite Public Service Loan Forgiveness rules to add exclusions.
- May discourage employment at organizations with controversial or risky activities.
Topics
Summary
This order changes who can receive Public Service Loan Forgiveness by excluding people who work for organizations that have a substantial illegal purpose. It directs the Secretary of Education, coordinating with the Treasury as appropriate, to propose revisions to the federal rule that defines "public service" so those organizations are not eligible.
People employed in public service jobs or at nonprofits engaged in immigration-law violations, terrorism support, child trafficking or abuse, illegal discrimination, or repeated state-law offenses could lose forgiveness. The policy aims to stop public funds from subsidizing illegal or harmful activities and protect national security.
Questions, answered
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