Trump administration to limit student loan forgiveness eligibility for some public servants

The U.S. Department of Education released its final rule on Thursday aimed at limiting eligibility for a popular student loan forgiveness program for public servants.

The rule, which takes effect July 1, 2026, will change the definition of a “qualifying employer” under the Public Service Loan Forgiveness program. PSLF, signed into law in 2007 by George W. Bush, offers debt cancellation after a decade to borrowers who work for non-profits and the government.

Under the new Trump administration policy, organizations “that engage in unlawful activities” such as “supporting terrorism and aiding and abetting illegal immigration” will be excluded from the program, according to an Education Department statement.