student loan forgiveness public service changes trump.

U.S. Secretary of Education Linda McMahon speaks during the summer meeting of the National Governors Association at the Broadmoor Hotel in Colorado Springs, Colo. (AP Photo/David Zalubowski)

Some workers would be excluded from student loan forgiveness program for ‘illegal’ activity

The Trump administration has proposed changes to the Public Service Loan Forgiveness program that could exclude teachers, social workers and nurses if their employers engage in activities deemed illegal. The Education Department released the proposal on Friday, targeting nonprofits or government bodies working with immigrants and transgender youth. Critics argue this could turn loan forgiveness into a political tool. The proposal allows the education secretary to decide which organizations are excluded. The public has 30 days to comment before the changes take effect in July 2026. Critics call it an attempt to weaponize student loan cancellation.

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