Trump Targets PSLF Abuse with New Executive Order [WATCH]

President Donald Trump signed an executive order Friday night revising the Public Service Loan Forgiveness (PSLF) Program, restricting eligibility for individuals involved in certain illegal activities, including violations of immigration laws, criminal activity during protests, and actions deemed harmful to national security.

The move is part of the Trump administration’s broader effort to roll back student loan forgiveness policies implemented under the Biden-Harris administration.

JUST IN: President Trump signed an Executive Order to halt the Public Service Loan Forgiveness (PSLF) for activist programs and organizations that engage in illegal activities.

“Instead of alleviating worker shortages in necessary occupations, the PSLF Program has misdirected… pic.twitter.com/0qr20Yprco

— Walter Curt (@WCdispatch_) March 8, 2025

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The executive order argues that previous modifications to the PSLF Program “abused” the system by forgiving loans for individuals engaged in activism that, according to the administration, fails to serve the public interest.

“The prior administration abused the PSLF Program through a waiver process, using taxpayer funds to pay off loans for employees still years away from the statutorily required number of payments,” the order states.

“Moreover, instead of alleviating worker shortages in necessary occupations, the PSLF Program has misdirected tax dollars into activist organizations that not only fail to serve the public interest, but actually harm our national security and American values, sometimes through criminal means.”

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Under the new order, student loan forgiveness eligibility may be revoked for individuals involved in:

• Support for terrorism
• Child abuse, including “the chemical and surgical castration or mutilation of children or the trafficking of children to so-called transgender sanctuaries”
• Aiding or abetting illegal discrimination
• Violations of federal immigration laws
• State law violations, such as trespassing, disorderly conduct, vandalism, and obstruction of highways

The PSLF Program was originally designed to forgive student loan debt for government and nonprofit employees who complete 10 years of public service and make the required payments during that time.

BREAKING | Donald Trump signs new executive order restricting eligibility for the Public Service Loan Forgiveness (PSLF) program, barring nonprofit workers from loan forgiveness if they are employed at organizations engaged in “illegal or improper” activities. White House… pic.twitter.com/hkNKsIw26N

— Drop Site (@DropSiteNews) March 7, 2025

Kevin Hassett, director of the National Economic Council, explained the rationale behind the executive order, citing concerns that certain nonprofit organizations were benefiting from taxpayer-funded loan forgiveness despite engaging in what the administration views as improper conduct.

“The problem is that a lot of these people work for NGO organizations or nonprofit organizations that engage in illegal, what we consider to be improper, activities,” Hassett said.

“Supporting, for example, illegal immigration or foreign terrorist organizations.”

Secretary of Education Linda McMahon reassured that the PSLF Program itself would remain intact but emphasized the need to ensure it aligns with lawful public service.

“Yes, because that’s the law. We certainly should honor those programs,” McMahon said.

“And if we want stronger or more programs for loan forgiveness, then I think Congress should pass those programs and then we would implement it.”

The executive order comes as nationwide demonstrations over the Israel-Gaza conflict have intensified, with encampments and protests escalating on college campuses.

Trump has repeatedly criticized these demonstrations, particularly in the wake of the October 7, 2023, Hamas terrorist attack.

Trump’s administration recently pulled $400 million in federal funding from Columbia University, arguing the institution failed to address antisemitic incidents linked to pro-Palestinian protests on campus.

In a statement, McMahon defended the funding cut and condemned universities for their handling of antisemitic incidents.

“Today, we demonstrate to Columbia and other universities that we will not tolerate their appalling inaction any longer,” she said, adding that Jewish students had been subjected to “relentless violence, intimidation, and antisemitic harassment on their campuses.”

The executive order is expected to face legal challenges, but it marks a significant shift in how student loan forgiveness is applied, particularly concerning activism and protest-related conduct.

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