US Department of Education's New Rules Barred from Loan Relief for Groups Opposed by Trump Administration
The US Department of Education has finalized a new rule that could bar nonprofits deemed to have undertaken work with a "substantial illegal purpose" from the Public Service Loan Forgiveness programme. The rules, set to take effect in July 2026, appear to single out certain organizations that do work in areas President Donald Trump politically opposes, including immigration advocacy and transgender rights.
Under the new rule, the education secretary has the power to exclude groups if they engage in activities deemed "prohibited" by the administration. This includes using puberty-delaying medication for gender-affirming healthcare, supporting undocumented immigration, or working with organizations that have been accused of terrorism.
The Trump administration claims its decisions will not be made based on political views or policy preferences, but critics say this is a thinly veiled attempt to target left-leaning and liberal organizations. Advocates fear the move will result in many nonprofits losing access to loan forgiveness, which could lead to a shortage of professionals working in public service jobs.
The Public Service Loan Forgiveness programme was created by Congress in 2007 to direct more graduates into public service careers. Workers who work in government or non-profit sectors can benefit from the programme if they make 10 years of payments and meet certain requirements. However, the new rules could significantly impact these individuals' ability to access this benefit.
Critics have denounced the administration for using false claims of terrorism or criminal behavior to silence opposing views and restrict civil liberties. Organizations such as the Amica Center for Immigrant Rights have expressed concern over the education secretary's broad power to determine if a group should be barred from loan forgiveness.
The National Council of Nonprofits has also criticized the change, stating that it would allow future administrations to change eligibility rules based on their own priorities or ideology. The organization warns that this could create uncertainty and instability for nonprofits working in critical areas such as immigration advocacy and transgender rights.
As a result of these new rules, many nonprofits are worried about losing access to loan forgiveness, which could lead to a shortage of professionals working in public service jobs. Advocates are urging the administration to reconsider its decision and ensure that the programme is accessible to all eligible organizations, regardless of their views or activities.
The US Department of Education has finalized a new rule that could bar nonprofits deemed to have undertaken work with a "substantial illegal purpose" from the Public Service Loan Forgiveness programme. The rules, set to take effect in July 2026, appear to single out certain organizations that do work in areas President Donald Trump politically opposes, including immigration advocacy and transgender rights.
Under the new rule, the education secretary has the power to exclude groups if they engage in activities deemed "prohibited" by the administration. This includes using puberty-delaying medication for gender-affirming healthcare, supporting undocumented immigration, or working with organizations that have been accused of terrorism.
The Trump administration claims its decisions will not be made based on political views or policy preferences, but critics say this is a thinly veiled attempt to target left-leaning and liberal organizations. Advocates fear the move will result in many nonprofits losing access to loan forgiveness, which could lead to a shortage of professionals working in public service jobs.
The Public Service Loan Forgiveness programme was created by Congress in 2007 to direct more graduates into public service careers. Workers who work in government or non-profit sectors can benefit from the programme if they make 10 years of payments and meet certain requirements. However, the new rules could significantly impact these individuals' ability to access this benefit.
Critics have denounced the administration for using false claims of terrorism or criminal behavior to silence opposing views and restrict civil liberties. Organizations such as the Amica Center for Immigrant Rights have expressed concern over the education secretary's broad power to determine if a group should be barred from loan forgiveness.
The National Council of Nonprofits has also criticized the change, stating that it would allow future administrations to change eligibility rules based on their own priorities or ideology. The organization warns that this could create uncertainty and instability for nonprofits working in critical areas such as immigration advocacy and transgender rights.
As a result of these new rules, many nonprofits are worried about losing access to loan forgiveness, which could lead to a shortage of professionals working in public service jobs. Advocates are urging the administration to reconsider its decision and ensure that the programme is accessible to all eligible organizations, regardless of their views or activities.
the trumps are just trying to silence people who dont agree with them but it's gonna backfire big time 
these nonprofits need loan forgiveness too to keep doin there thing and now they're gonna be all like "good luck" 
its all about politicizing everything and thats not what america is about 
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. I'm all for making sure nonprofits are transparent and accountable, but this is a whole different story 
, like what if i wanted to donate my skills to help ppl in need but the gov just says no because they dont agree with me 
...this public service loan forgiveness prog is supposed to be about servin the people not silencin dissenting voices 
, and now its just a way for the admin to target left-leaning orgs 
, it's not only unfair but also un-American 
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. It's been too long since we've seen some real passion and commitment to social justice issues. So here's hoping that this controversy sparks even more activism and resistance 
. We need more people like that in our lives!
. This rule is gonna make it super hard for those organizations to get the loan forgiveness they need, which means fewer people will wanna work in public service jobs 
. It's like, what's the point of having a program that's supposed to encourage people to work in public service if you're just gonna shut them down? 
I'm not surprised by this move at all. It's like they're trying to make sure all the liberal arts and activist groups can't get a free pass on their student loans. Like, who do they think they are? Trying to police every single non-profit organization in the country just because it doesn't align with their ideology is ridiculous. And what's with this "substantial illegal purpose" nonsense? It sounds like code for anything that Trump doesn't agree with. 
? It's like, I get it, we don't want terrorism, but come on, using puberty-delaying medication is not a crime... or is it? 
Anyway, this new rule is just a big ol' mess. Nonprofits are going to be super stressed about getting loan forgiveness now, and who knows, maybe some orgs will even get shut down for doing what they're supposed to do – help people! 
The idea that future admins can change the rules based on their own ideology is just a whole nother can of worms. Can't we all just get along... with free money? 
this new rule seems like a way to silence opposing views and restrict civil liberties which is just wrong 
This new rule is absolute madness! I mean, what's next? Banning groups from getting loans just because they support something the admin doesn't like? 
the idea that orgs could lose access to loan forgiveness because of their work in immigration advocacy or trans rights is just devastating 
! I mean, what's next? Targeting groups for just having a different opinion on social issues? It's like, totally not about public service loan forgiveness, but more about silencing certain voices and limiting access to education 
. I'm all for promoting public service careers, but this rule just feels like a major attack on nonprofit organizations doing important work 
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. and now ppl who work in critical areas like immigration advocacy & transgender rights r gonna lose access 2 a program meant 2 help them 
.
. That's not okay, you know? We need more people doing good work in our communities, not fewer 
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it's all about silencing opposing views & restricting civil liberties... 