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Trump's March 10 Executive Order Disqualifies Nonprofit Workers from Public Service Loan Forgiveness, Affecting 2 Million Borrowers

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Updated Mar 12, 2025, 02:47 PM

On March 10, 2025, President Trump signed an executive order that alters eligibility criteria for the Public Service Loan Forgiveness (PSLF) program. The new order disqualifies employees of nonprofit organizations that engage in activities deemed illegal or improper, including violations of immigration law, support for terrorist organizations, child abuse, discrimination, and violations of state law. This move is expected to have substantial implications for nonprofit workers, particularly those involved in diversity, equity, and inclusion (DEI) initiatives. Currently, over 2 million student loan borrowers qualify for PSLF, but the executive order places their eligibility in jeopardy, potentially leaving many in a precarious position regarding their loans. Experts suggest that borrowers should continue to certify their employment and make qualifying payments while the program remains operational.

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Sources

forbes.com(3)epi.org wane.com democracynow.org

Forbes

@Forbes

"There's not much borrowers can do right now...Continue to certify your employment, continue to make qualifying payments. The program is here for now," @AdamSMinsky tells @_brittanylewis about borrowers who currently qualify for the PSLF program. https://t.co/FgX5YJrzaN https://t.co/zVggsKZWEs

Forbes

@Forbes

"What President Trump is trying to do is remove from PSLF eligibility organizations that engage in certain types of conduct," @AdamSMinsky tells @_brittanylewis about the PSLF program. https://t.co/FgX5YJrzaN https://t.co/fasse4AwwC

Forbes

@Forbes

"Public Service Loan Forgiveness...allows borrowers to receive federal loan forgiveness after 10 years of qualifying payments while working for certain nonprofit or government organizations," @AdamSMinsky tells @_brittanylewis about the PSLF program. https://t.co/FgX5YJrzaN https://t.co/0AMS6YF5c6