{"id":7538,"date":"2025-11-21T14:49:54","date_gmt":"2025-11-21T20:49:54","guid":{"rendered":"https:\/\/westplexnews.com\/index.php\/2025\/11\/21\/new-federal-student-debt-rule-seen-as-tool-to-enforce-trump-agenda-2\/"},"modified":"2025-11-21T14:49:54","modified_gmt":"2025-11-21T20:49:54","slug":"new-federal-student-debt-rule-seen-as-tool-to-enforce-trump-agenda-2","status":"publish","type":"post","link":"https:\/\/westplexnews.com\/index.php\/2025\/11\/21\/new-federal-student-debt-rule-seen-as-tool-to-enforce-trump-agenda-2\/","title":{"rendered":"New federal student debt rule seen as tool to enforce Trump agenda"},"content":{"rendered":"

\"A<\/p>\n

A U.S. Department of Education regulation slated to take effect in July 2026 would give the secretary broad discretion to decide which organizations qualify for a program to forgive student loans for borrowers that enter public service. (Getty Images)<\/p>\n

WASHINGTON \u2014 A new U.S. Department of Education regulation to narrow eligibility for a key student debt relief program for public service workers has drawn strong opposition from advocates who argue the regulation is an attempt to target organizations whose missions do not align with President Donald Trump\u2019s agenda.\u00a0<\/p>\n

Under a final rule slated to take effect in July,\u00a0employers that participate<\/a> in \u201cunlawful activities such that they have a substantial illegal purpose\u201d would be excluded from the Public Service Loan Forgiveness program, which is meant to encourage college graduates to pursue careers in public service.<\/p>\n

The language of the final rule, which focuses on issues such as gender-affirming care and illegal immigration, has also raised concerns it meant to enforce the Trump administration\u2019s priorities.<\/p>\n

At least three lawsuits from Democratic attorneys general, cities, labor unions and nonprofit advocacy groups argue that the regulation is overly vague and exceeds the department\u2019s authority.\u00a0<\/p>\n

The rule would hurt not only the institutions that benefit from the program, but the public service workers themselves, Winston Berkman-Breen, legal director at the advocacy group Protect Borrowers, told States Newsroom.<\/p>\n

\u201cIt\u2019s not just about the macro effect of whether these organizations, including governments, will be able to do the work they do,\u201d he said. \u201cIt\u2019s also the individual financial health and security of borrowers and their households that will be really, really detrimentally affected by this rule, and we\u2019re already sort of seeing that happen.\u201d\u00a0<\/p>\n

The organization is representing a coalition of cities, nonprofit advocacy groups and labor unions in one of the lawsuits over the regulation.\u00a0<\/p>\n

Here\u2019s a closer look at the policy and what it would mean for borrowers and employers:\u00a0<\/p>\n

What is Public Service Loan Forgiveness?<\/h4>\n

Congress created the Public Service Loan Forgiveness program, or PSLF, in 2007 via the College Cost Reduction and Access Act to incentivize people to take on public service careers.\u00a0<\/p>\n

PSLF forgives the remaining student debt for borrowers after they make 120 qualifying monthly payments while working for an eligible employer.\u00a0<\/p>\n

How will the regulation work?\u00a0<\/h4>\n

The department\u2019s final rule \u2014 which stems from a\u00a0March executive order<\/a> \u2014 is only forward-looking, meaning workers would not lose any credit earned prior to the July 1, 2026, effective date.\u00a0<\/p>\n

Under the policy, the Education secretary can\u00a0determine<\/a> \u201cby a preponderance of the evidence\u201d that an employer has taken part in \u201cillegal activities such that the organization has a substantial illegal purpose.\u201d\u00a0<\/p>\n

Affected employers can either reapply to serve as a qualifying employer after 10 years or try to regain eligibility in a quicker timeframe if they enter into a \u201ccorrective action plan\u201d that needs the secretary\u2019s approval.\u00a0<\/p>\n

The activities that could disqualify employers, according to the\u00a0department<\/a>, include:\u00a0<\/p>\n