Loan relief stripped from nonprofit workers whose
organizations are deemed to engage in “improper activities”

Washington, D.C. — President Donald Trump has issued an executive order that fundamentally alters the Public Service Loan Forgiveness (PSLF) program, stripping loan relief from nonprofit workers whose organizations are deemed to engage in “improper activities.”

This controversial move targets nonprofits involved in immigration advocacy, diversity initiatives, and gender-affirming care, accusing them of promoting illegal actions without providing concrete evidence. Critics argue this is a politically motivated attack on organizations that oppose Trump’s policies, jeopardizing the livelihoods of millions of Americans who rely on the PSLF program.

The PSLF program, established in 2007, was designed to encourage careers in public service by forgiving student loans after ten years of payments for employees in government and nonprofit sectors. Trump’s directive now excludes workers whose nonprofits allegedly “fail to serve the public good” or “jeopardize national security.”

The vague language has sparked outrage among civil rights groups and nonprofit leaders, who fear this opens the door for arbitrary and politically biased exclusions.

Education Secretary Linda McMahon had previously committed to upholding the PSLF program as mandated by Congress. However, Trump’s order directs her department to revise eligibility criteria, effectively disqualifying workers whose nonprofits operate in areas like immigration reform or LGBTQ+ advocacy.

Critics note that these changes align with Trump’s political agenda rather than addressing legitimate concerns about illegal activities.

The executive order has drawn sharp criticism for its lack of transparency and evidence.

Organizations targeted under these new rules may face financial ruin and reputational damage, as they are labeled as engaging in “illegal” or “disruptive” activities without due process. Advocacy groups warn this could deter talented individuals from pursuing careers in public service, undermining the very purpose of the PSLF program.

This move follows broader efforts by Trump to curtail nonprofit operations that conflict with his administration’s policies.

A recent bill passed by the House grants the Treasury Department authority to revoke tax-exempt status from nonprofits accused of supporting terrorism—a measure critics fear could be weaponized against political opponents. Combined with the PSLF rollback, these actions signal an alarming trend toward suppressing dissent under the guise of national security.

Millions of Americans working in nonprofits now face uncertainty about their financial futures.

The PSLF program has already been plagued by administrative hurdles and shifting regulations, leaving many borrowers struggling to access promised relief. Trump’s latest order exacerbates these challenges, potentially disqualifying thousands of workers overnight based on arbitrary criteria.

Civil rights advocates are calling for immediate congressional intervention to protect nonprofit workers and ensure the PSLF program remains intact as originally intended. As Trump continues to reshape federal programs to align with his political goals, critics warn of long-term damage to public trust and the nonprofit sector’s ability to serve vulnerable communities.

Politically Motivated: Nonprofit Staff Hit in Loan Forgiveness Rollback (March 8, 2025)

 #TrumpLoanRollback #NonprofitWorkers #PSLFChanges
#StudentDebtCrisis #PoliticalTargeting