Is Trump Weaponizing Student Loan Forgiveness?

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People demonstrate in Lafayette Park across from the White House in Washington, Friday, June 30, 2023, after a sharply divided Supreme Court has ruled that the Biden administration overstepped its authority in trying to cancel or reduce student loan debts for millions of Americans. (AP Photo/Andrew Harnik, File)
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President Donald Trump is tightening the reins on student loan forgiveness. The administration is overhauling the Public Service Loan Forgiveness (PSLF) program, which cancels student debt for public servants such as teachers, nurses and nonprofit workers after 10 years.

But now, who qualifies might depend on how their employer aligns with Trump’s politics. Under new rules proposed by the Department of Education, organizations tied to immigrants, transgender youth or pro-Palestinian advocacy could be cut off entirely.

The administration says it’s stopping “illegal activity,” but definitions — such as aiding undocumented immigrants or providing gender-affirming care to minors — are vague, and the power lies squarely with the secretary of education to decide who’s in and who’s out.

The result could be that hospitals, school systems and entire cities are blacklisted.

That means countless public workers could lose access to loan forgiveness overnight — simply because of where they work.

If the plan moves forward, many could be forced to choose between their job and their debt.


Click play to listen to the report from AURN White House Correspondent Ebony McMorris. For more news, follow @E_N_McMorris & @aurnonline.

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AURN NEWS WITH EBONY MCMORRIS