Revitalizing Public Service Loan Forgiveness – The White House

The President has issued an order to reform the Public Service Loan Forgiveness (PSLF) Program, initially established in 2007 to forgive student loans after 10 years of public service. The previous administration misused the program, diverting taxpayer funds to organizations engaging in illegal activities and harming national security. The new policy will exclude from PSLF eligibility those employed by organizations involved in significant illegal actions, such as immigration violations and terrorism support. The Secretary of Education will work to revise relevant regulations to enforce these changes, ensuring public service reflects lawful activities and preserves American values.

By the authority granted to me as President under the Constitution and the laws of the United States of America, I hereby issue the following order:

Section 1. Purpose. In 2007, Congress launched the Public Service Loan Forgiveness (PSLF) Program aimed at encouraging Americans to pursue careers in the public service sector by promising to forgive their remaining student loans after they completed 10 years of service while making 10 years of minimum payments.

The previous administration misused the PSLF Program via a waiver process, diverting taxpayer funds to forgive loans for employees who were still far from meeting the legally mandated number of payments. Rather than addressing workforce shortages in essential sectors, the PSLF Program has redirected tax dollars towards activist groups that neither serve the public good nor support our national security and American values, often engaging in unlawful activities. Additionally, the PSLF Program creates counterproductive incentives that can escalate tuition costs, burden students in low-demand majors with overwhelming debt, and potentially lead students to organizations that operate under a non-profit guise while undermining our national interests, thereby necessitating further federal funding to mitigate the harmful societal impacts triggered by these organizations’ federally subsidized misconduct.

As President of the United States, I am bound to protect, preserve, and defend the Constitution and our national security, which includes putting an end to the subsidization of illegal activities such as illegal immigration, human trafficking, child exploitation, extensive damage to public property, and disruptions to public order that jeopardize the security and stability of the United States. Therefore, it is the policy of my Administration that individuals employed by organizations engaging in activities that have a significant illegal purpose will not qualify for public service loan forgiveness.

Sec. 2. Restoration of Public Service Loan Forgiveness. The Secretary of Education shall suggest amendments to 34 C.F.R. 685.219, Public Service Loan Forgiveness Program, in collaboration with the Secretary of the Treasury as appropriate, ensuring that the definition of “public service” excludes organizations involved in activities that have a significant illegal purpose, including:

(a) aiding or abetting violations of 8 U.S.C. 1325 or other Federal immigration laws;

(b) supporting terrorism, which includes facilitating funding to, or the operations of, cartels classified as Foreign Terrorist Organizations per 8 U.S.C. 1189, or using violence to obstruct or influence Federal Government policy;

(c) child abuse, encompassing the chemical and surgical castration or mutilation of children, or trafficking children to so-called transgender sanctuary States for emancipation from their lawful guardians, in violation of applicable laws;

(d) engaging in a pattern of aiding and abetting illegal discrimination; or

(e) participating in a pattern of violating State tort laws, including laws against trespassing, disorderly conduct, public nuisance, vandalism, and obstruction of highways.

Sec. 3. General Provisions. (a) Nothing in this order shall be interpreted to impair or otherwise affect:
(i) the authority granted by law to an executive department or agency, or the head thereof; or
(ii) the functions of the Director of the Office of Management and Budget regarding budgetary, administrative, or legislative proposals.

(b) This order shall be executed in accordance with applicable laws and contingent upon the availability of appropriations.

(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other individual.

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