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.
More than 40 million Americans hold student loans, and the outstanding debt exceeds $1.6 trillion. Over 9 million borrowers may be eligible for PSLF, according to a 2022 estimate from Protect Borrowers, a nonprofit focused on student loans.
President Donald Trump has been a vocal critical of the Biden administration’s student loan forgiveness efforts, which included making it easier to qualify for PSLF. Under President Joe Biden, more than 1 million people had their debts cleared under the program.
