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Trump Administration Restricts Student Loan Forgiveness for Nonprofit Workers Engaged in "Illegal" Activities
Trump Administration Restricts Student Loan Forgiveness for Nonprofit Workers Engaged in "Illegal" Activities
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BTCCSquare news:
The TRUMP administration has finalized a rule that narrows eligibility for the Public Service Loan Forgiveness (PSLF) program, excluding workers at nonprofits deemed to engage in activities with a "substantial illegal purpose." The move has drawn criticism for potentially politicizing student debt relief and disproportionately affecting organizations serving marginalized communities.
Effective July 1, 2026, the policy could impact nonprofits providing services to immigrant families, transgender healthcare, or workplace diversity initiatives. The Education Department's interpretation of "illegal activities" remains undefined, creating uncertainty for public service workers who typically qualify for loan forgiveness after 120 payments.
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