Restoring Public Service Loan Forgiveness

This executive order directs the Secretary of Education to propose regulatory revisions narrowing Public Service Loan Forgiveness eligibility by excluding employees of organizations deemed to engage in activities with a 'substantial illegal purpose,' including immigration law violations, terrorism support, child abuse, illegal discrimination, and certain state tort violations. The order frames this as correcting prior administration abuses and protecting national security.

Federal Register Open PDF 90 FR 11885

Impact dates

Date TBD
Secretary of Education to propose revisions to 34 CFR 685.219

Key directives

Secretary of Education shall propose revisions to 34 CFR 685.219 (Public Service Loan Forgiveness Program regulations)
Secretary of Education to coordinate with Secretary of the Treasury as appropriate
Revisions must exclude from 'public service' definition organizations engaging in activities with substantial illegal purpose

Who is ordered

Timeline

Immediate

Policy declaration that organizations with 'substantial illegal purpose' are excluded from PSLF

Near term (90d)

Secretary of Education must propose revisions to 34 CFR 685.219

Long term

Regulatory revision process
Potential implementation of narrowed PSLF eligibility
Legal challenges likely

Risks & tensions

Vague 'substantial illegal purpose' standard creates enforcement uncertainty
Subjective criteria for (b)-(e) likely to generate First Amendment and due process litigation
Retroactive application to existing borrowers unclear
Coordination with Treasury not defined in scope
Potential conflict with statutory PSLF framework established by Congress in 2007
No explicit repeal of existing PSLF regulations or borrower certifications