For many people working in public service—teachers, nurses, firefighters, and nonprofit staff—the Public Service Loan Forgiveness (PSLF) program is a promise: stay in your job for 10 years, make qualifying payments, and your federal student loans can be forgiven. But that promise may now be at risk.
In March 2025, President Trump signed an executive order that aims to limit who qualifies for PSLF, potentially removing loan forgiveness eligibility for thousands of workers based on the type of organization they work for. While the changes are not immediate, the ripple effects could be serious—especially for low-income borrowers who depend on PSLF as a pathway to relief.
What PSLF Is—And Why So Many People Rely On It
The Public Service Loan Forgiveness (PSLF) program was created in 2007 to encourage people to work in public service roles, even if those jobs paid less than private sector careers. If you make 120 qualifying monthly payments while working full-time for a government agency or eligible nonprofit, the federal government forgives your remaining student loan balance.
This program has been a financial lifeline for millions. According to the Education Data Initiative, over 3 million borrowers are on track for PSLF, and “more than a million borrowers have had their student loans discharged through PSLF,” as reported by Forbes.
For many low-income workers—including public school teachers, nurses, military members, and public defenders—PSLF is the only realistic path out of student debt.
What Trump’s Executive Order Actually Says
The executive order, titled “Restoring Public Service Loan Forgiveness,” doesn’t eliminate PSLF outright—but it introduces new restrictions that could significantly narrow who qualifies.
It states that PSLF has wrongly “misdirected tax dollars into activist organizations” and outlines several types of work that would disqualify employees from loan forgiveness. According to Forbes, “Trump seeks to limit PSLF eligibility for organizations the administration determines are engaged in ‘illegal activities.’”
Some of the categories named in the order include:
- Groups that support undocumented immigrants
- LGBTQ+ organizations offering gender-affirming care
- Civil rights groups promoting diversity, equity, and inclusion (DEI)
- Nonprofits that have engaged in protest or civil disobedience
These categories are broad, and critics say they could be used to disqualify a wide range of public service workers based on their employer’s mission.
Can a President Really Change PSLF?
Despite the sweeping language in the executive order, many legal experts say President Trump can’t actually change the core rules of PSLF on his own. The program was created by Congress in 2007, and the law clearly defines which employers qualify—primarily government agencies and 501(c)(3) nonprofit organizations.
As Forbes explains, “The statute… does not permit a president to change the law to limit the PSLF eligibility of 501(c)(3) nonprofit organizations or government entities.”
Rather than directly rewriting the program, the executive order tells the Department of Education to start a formal rulemaking process. That process takes time—often one to two years—and must include public comment and legal review. Even then, any final rules could face legal challenges, especially if they contradict the original intent of the law.
In short: the order is serious, but the changes are not automatic, and may not even be legal.
Response and Next Steps
Borrower advocates and public service groups responded quickly to the executive order, calling it both harmful and unlawful. Natalia Abrams, president of the Student Debt Crisis Center, said, “This executive order is both illegal and deeply troubling for all nonprofit workers.”
Others warned of long-term consequences. Randi Weingarten, president of the American Federation of Teachers, described the order as “an illegal attack on millions of dedicated public service workers.” She added that her organization, which previously sued the Trump administration over student loan policies, is prepared to fight again.
For now, nothing has changed for borrowers already on track for PSLF—but the future of the program is less certain than ever. Staying informed and documenting your eligibility could be more important than ever.
