Is Public Service Loan Forgiveness going away? Understanding Trump’s executive order
By Eliza Haverstock, NerdWallet
On Mar. 7, President Donald Trump signed an executive order that seeks to limit who can qualify for Public Service Loan Forgiveness (PSLF). It directs the Education Secretary to write a proposal removing PSLF eligibility for borrowers who work for organizations serving “a substantial illegal purpose.”
Despite the order’s strong language, at this point, no borrowers are at imminent risk of losing their eligibility for PSLF. The program forgives a borrower’s federal student loans after they make 10 year’s worth of payments while working in public service — as teachers, firefighters, police officers, healthcare workers, government workers and other nonprofit employees.
“You’re right to freak out, but if you take a beat and dig into what the executive order says right now, it’s just a directive to change the language [of PSLF] in the future,” says Stanley Tate, a lawyer who specializes in student debt. “How that actually plays out is yet to be written. When it does, there will surely be a response from different advocacy groups that are interested in protecting borrowers moving forward.”