WASHINGTON (AP) – President Donald Trump orders changes to Forgiveness of public service loans A program that disqualifies workers from nonprofits who are deemed to be engaged in “inappropriate” activities.
The executive order, signed Friday, directs the education department to change programs that refuse loan relief to some borrowers. White House officials said it would eliminate loan exemptions for illegal immigrants, foreign terrorist groups, or people involved in other illegal activities.
Congress created the program in 2007, encouraging careers in government or nonprofit organizations. After the borrower has made 10 years of payment while working in public services, the offer to cancel the remaining student debt. It is open to government workers, teachers, police, religious pastors, and certain nonprofit organizations.
More than 2 million Americans have qualified employment and open student loans, according to December data from the Education Division.
in her Senate Confirmation hearingEducation Secretary Linda McMahon has pledged to continue the exemption from public services loans ordered by Congress. “That’s the law,” she said in response to a question from D-VA Sen. Tim Kane.
Under current regulations, nonprofits are eligible if they focus on certain areas such as public interest law, public health, and education. Trump’s order appears to target people who work in certain areas that are opposed to his political agenda, including immigrants.
The supporters have I went to court Advocating the program in the past, and Trump’s actions, is almost certain to face legal challenges. It immediately rebelled from its supporters.
“Threatening to punish hardworking Americans for their employer’s perceived political views is, as you can imagine, roughly the same as a violation of the initial amendment,” said Aaron Ement of the National Student Legal Defense Network.
Eligibility rules updates typically require the education sector to go through a lengthy federal rulemaking process. New regulations launched this year will not normally be in effect until 2027.
The forgiveness program has been the subject of a political tug of war since Trump’s first term, when borrowers first began reaching the 10-year finish line.
The majority of those who applied for relief in 2017 were denied because they were found to be registered with ineligible payment plans or not meeting other criteria. an Survey by the Federal Watchdog Group The education department concluded that it failed to clarify program eligibility rules.
Under President Joe Biden, the education department relaxed the rules of the program through the federal rulemaking process and expanded eligibility to those who would have been previously denied.
In the final weeks, the Biden administration announced it had given more relief than that. 1 million people Through the program, this has increased from 7,000 people who were given cancellations during Trump’s first term.
The Biden administration’s change was attacked by Republican lawmakers who said only Congress has the authority to change the rules of the program.
Biden also pushed for wider student loan cancellations, but was blocked by repeated legal challenges from the Supreme Court and Republican-led states.
Republicans are sharply opposed to cancelling student loans, saying they will unfairly hand over costs to taxpayers who have already not paid off their loans or went to college.
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