Trump rule lets Ed Dept bar PSLF employers
The U.S. Department of Education finalized a rule on Oct. 30 granting the secretary power to exclude government and nonprofit employers from Public Service Loan Forgiveness if their work has a “substantial illegal purpose,” with examples targeting immigrant- and transgender‑youth services; the rule takes effect in July. The change could end PSLF eligibility for Twin Cities teachers, health‑care workers, and nonprofit employees if their Minnesota employer is barred; legal group Student Defense says it will sue.
Education
Legal
📌 Key Facts
- Final rule announced Oct. 30, 2025; effective July (next program year)
- Targets activities including aiding illegal immigration and “chemical castration” (defined to include puberty blockers/gender‑affirming care for minors)
- Education Undersecretary Nicholas Kent defended the policy; Student Defense says it will challenge it in court
- DOE estimates fewer than 10 organizations would be barred per year; PSLF has canceled loans for 1M+ Americans