Trump's New Student Loan Law Is Quietly Blocking Public Service Workers From Loan Forgiveness— and Most W

Federal student loan borrowers pursuing Public Service Loan Forgiveness, or PSLF, are facing new eligibility rules after key provisions of President Donald Trump's One Big Beautiful Bill Act took effect on July 1, changing which repayment plans qualify and limiting options for some Parent PLUS borrowers.

PSLF is a federal program created in 2007 that forgives eligible student loan balances for government and nonprofit employees after they make 120 qualifying monthly payments, or 10 years of service.

While federal courts blocked the Trump administration's separate effort to narrow eligible employers, other changes enacted under the new law remain in effect.

New Repayment Rules Affect PSLF Borrowers who take out federal student loans on or after July 1 must enroll in the new Repayment Assistance Plan, or RAP, if they want their payments to count toward PSLF.

The default Tiered Standard Repayment Plan does not qualify for the program.