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March 7, 2025 Restoring Public Service Loan Forgiveness - Executive Order

This executive order aims to revise the Public Service Loan Forgiveness (PSLF) Program, which was established in 2007 to forgive student loans for individuals who complete 10 years of public service while making qualifying payments. The order directs changes to the program’s eligibility criteria, particularly regarding organizations whose activities may be deemed unlawful or contrary to national security interests.

The order states that prior modifications to the PSLF program led to taxpayer-funded loan forgiveness for individuals who had not yet met the statutory requirements. Additionally, it asserts that the program has subsidized organizations whose activities may include illegal or harmful actions.


Key Provisions

  1. Revising PSLF Eligibility Criteria

    • The Secretary of Education, in coordination with the Secretary of the Treasury, is directed to revise 34 C.F.R. 685.219 to ensure that organizations engaging in activities with a “substantial illegal purpose” are excluded from PSLF eligibility.

    • Activities specified in the order that may disqualify an organization from PSLF eligibility include:

      • Violations of federal immigration laws under 8 U.S.C. 1325.

      • Supporting designated Foreign Terrorist Organizations (FTOs) under 8 U.S.C. 1189 or engaging in violence to influence government policy.

      • Engaging in child abuse, including unauthorized medical procedures on minors and trafficking of minors for legal emancipation.

      • Aiding and abetting illegal discrimination.

      • Repeated violations of state tort laws, such as trespassing, disorderly conduct, vandalism, and obstruction of public spaces.


General Provisions

  • The order does not override any existing legal authorities of federal agencies.

  • Implementation will be subject to applicable laws and the availability of federal funding.

  • The order does not create new enforceable legal rights for any party.



Writer's Note: Summary made with the use of AI tools for editing and quick processing, facts checked against the order before publishing.

 
 
 

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