Trump News : President Donald Trump is set to sign an executive order today, March 8, that would reshape the Public Service Loan Forgiveness (PSLF) program, barring government and nonprofit workers from debt relief if their employers engage in what the administration deems “improper activities.”
Highlights
- Trump to sign EO barring student loan forgiveness for public servants tied to “improper activities.”
- Order targets nonprofits supporting illegal immigration and other acts, per White House.
- Critics slam move as a First Amendment violation, legal challenges loom.
Trump to Sign Order Barring Student Loan Forgiveness for Public Servants Engaged in ‘Improper Activities’
The move, announced Friday by White House staff secretary Will Scharf, targets organizations linked to illegal immigration, terrorism, or other law-breaking acts, fulfilling Trump’s pledge to curb federal support for groups he calls “anti-American.” As the order nears enactment, it’s already drawing fierce backlash and promises of courtroom battles over its legality and scope.
A Targeted Crackdown on PSLF
The EO, slated for Trump’s signature this afternoon, directs the Education and Treasury Departments to exclude PSLF eligibility for employees of nonprofits involved in “illegal or improper activities,” Scharf told reporters.
Examples cited include supporting illegal immigration, foreign terrorist groups, or public disruptions—broad categories echoing Trump’s March 5 Congressional address railing against “activist” misuse of taxpayer funds.
The PSLF program, enacted in 2007 under President George W. Bush, forgives federal student loans for public servants—like teachers, nurses, and nonprofit staff—after 10 years of payments, with over 1 million borrowers aided by Biden-era fixes, per Education Department data.
Trump’s order follows his administration’s March 7 cancellation of $400 million in Columbia University grants over antisemitism claims, signaling a pattern of leveraging federal funds to enforce policy goals.
Education Secretary Linda McMahon, despite pledging to uphold PSLF during her Senate confirmation, will oversee the changes, which the White House frames as restoring the program’s “original intent” for “legitimate” public service—nursing, not activism, per a March 8 White House fact sheet. Details on defining “improper” remain vague, with Scharf suggesting a case-by-case approach, raising fears of political targeting.
Backlash and Legal Hurdles
Critics pounced, calling the EO an assault on free speech and association. “Threatening to punish hardworking Americans for their employers’ perceived political views is a flagrant First Amendment violation,” said Aaron Ament of the National Student Legal Defense Network, predicting swift lawsuits.
The Student Borrower Protection Center’s Mike Pierce tweeted Friday, “Trump is weaponizing debt to police speech that doesn’t toe the MAGA line—our democracy is on fire.”
Legal experts question Trump’s authority to alter a congressionally mandated program, noting the PSLF statute lacks exceptions for nonprofit activities and requires rulemaking, not unilateral action.
Advocates fear the order could chill nonprofit hiring in fields like immigration aid or reproductive health—areas Trump’s team has flagged, per The New York Times. Over 2 million borrowers hold PSLF-eligible jobs, with $78.5 billion forgiven since 2017, per December 2024 data—numbers now at risk.
A Broader Agenda Unfolds
The EO lands amid Trump’s whirlwind week—crypto summits, Iran threats, and Canada tariff spats—underscoring his multi-front push six weeks into term two.
It dovetails with Project 2025’s call to gut PSLF, though bipartisan support for the program (aided by Biden’s 2021 waiver) complicates full repeal without Congress, where a 2023 House bid failed.
The Dow dipped 300 points Friday as trade and policy chaos brewed, yet Trump pressed on, hinting at more education cuts after Columbia’s fate.
As McMahon prepares to implement the order—contradicting her “that’s the law” vow to Sen. Tim Kaine—its fallout could redefine public service, with courts likely to decide if Trump’s pen oversteps his power.
