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U.S. President Donald Trump arrives to deliver remarks during a luncheon in the Rose Garden of the White House on Oct. 21, 2025 in Washington, DC.<\/p>\n
Anna Moneymaker | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n
The U.S. Department of Education released its final rule<\/a> on Thursday aimed at limiting eligibility for a popular student loan forgiveness program <\/a>for public servants.<\/p>\n The rule<\/a>, which takes effect July 1, 2026, will change the definition of a “qualifying employer” under the Public Service Loan Forgiveness program. PSLF, signed into law in 2007 by George W. Bush, offers debt cancellation<\/a> after a decade to borrowers who work for non-profits and the government.<\/p>\n Under the new Trump administration policy, organizations “that engage in unlawful activities” such as “supporting terrorism and aiding and abetting illegal immigration” will be excluded from the program, according to an Education Department statement.<\/p>\n More than 40 million Americans hold student loans, and the outstanding debt exceeds $1.6 trillion.\u00a0Over 9 million borrowers may be eligible for PSLF<\/a>, according to a 2022 estimate from Protect Borrowers, a nonprofit focused on student loans.<\/p>\n<\/div>\n