Original Date Announced

Executive Order 14235, "Restoring Public Service Loan Forgiveness," threatens federal student loan forgiveness for individuals who work with organizations that provide services to undocumented immigrants.

§ 1 of the EO states that "it is the policy of my Administration that individuals employed by organizations whose activities have a substantial illegal purpose shall not be eligible for public service loan forgiveness." The EO states that the president has a duty to end "the subsidization of illegal activities, including illegal immigration...."

§ 2 of the EO states that the Secretary of Education "shall propose revisions to 34 C.F.R. 685.219, Public Service Loan Forgiveness Program, in coordination with the Secretary of the Treasury as appropriate, that ensure" that the definition of "public service" will exclude organizations that (among other things):

• "aid[] or abet[] violations of 8 U.S.C. 1325 [Unlawful Entry, Failure To Depart, Fleeing Immigration Checkpoints, Marriage Fraud, Commercial Enterprise Fraud] or other Federal immigration laws;" and
• support[] terrorism, including by facilitating funding to, or the operations of, cartels designated as Foreign Terrorist Organizations consistent with 8 U.S.C. 1189, or by engaging in violence for the purpose of obstructing or influencing Federal Government policy."

Trump 2.0 [ID #1598]

Subsequent Trump and Court Action

2025.10.31 DOE 2025-19729 - William D. Ford Federal Direct Loan Program

The Department of Education issued a final rule amending the Public Service Loan Forgiveness (PSLF) program regulations at 34 C.F.R. § 685.219 to exclude from loan-forgiveness eligibility employers that engage in work with a "substantial illegal purpose." The rule is aimed primarily at organizations that work with immigrants and transgender youth. The rule states that "activities indicative of a substantial illegal purpose include aiding and abetting violations of Federal immigration laws, supporting terrorism or engaging in violence for the purpose of obstructing or influencing Federal Government policy, engaging in the chemical and surgical castration or mutilation of children in violation of Federal or state law, engaging in the trafficking of children to another State for purposes of emancipation from their lawful parents in violation of Federal or State law, engaging in a pattern of aiding and abetting illegal discrimination, and engaging in a pattern of violating State laws."

The amended regulations establish methods for a disqualified employer to regain eligibility and stipulate that an employer-ineligibility determination is not retroactive, such that PSLF borrowers will receive credit for work performed at their employer until the date the employer is found ineligible.

The rule is effective on July 1, 2026.