Trump administration eyes cuts to student-loan forgiveness for public servants

Proposed regulatory text from the Education Department would ban certain employers from being eligible for Public Service Loan Forgiveness

Last Updated: June 28, 2025 at 1:56 p.m. ET
First Published: June 27, 2025 at 2:33 p.m. ET

The Trump administration is looking to narrow the definition of who qualifies as a public servant for the purposes of a student-loan forgiveness program. 

In draft regulatory text circulated this week by the U.S. Education Department, the agency proposed stripping eligibility for Public Service Loan Forgiveness from organizations engaging in activities that have “a substantial illegal purpose.” Representatives from certain interest groups, including consumer advocates, borrowers and servicers, will debate the plan and its implications for the future of PSLF next week.