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Trump administration eyes cuts to student-loan forgiveness for public servants

June 28, 2025
05:56 PM
2 min read
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moneyfinancialeducationpublic servicesmarket cyclesseasonal analysispolicy

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The proposed regulatory text from the Education Department would ban certain employers from being eligible for Public Service Loan Forgiveness.

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2 min read

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investment

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Published

June 28, 2025

05:56 PM

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MarketWatch

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moneyfinancialeducationpublic servicesmarket cyclesseasonal analysispolicy

Advanced ➔ Results Trump administration eyes cuts to student-loan forgiveness for public servantsposed regulatory text from the Education Department would ban certain employers from being eligible for Public Service Loan ForgivenessLast d: June 28, 2025 at 1:56 p

ETFirst Published: June 27, 2025 at 2:33 p

ETResizeListen(7 min)The Department of Education, headed by Education Secretary Linda McMahon, is posing major changes to a loan-forgiveness gram that align with an executive order issued earlier this year by President Donald Trump

Photo: Agence France-Presse/Getty ImagesThe Trump administration is looking to narrow the definition of who qualifies as a public servant for the purposes of a student-loan forgiveness gram

In draft regulatory text circulated this week by the U

Education Department, the agency posed stripping eligibility for Public Service Loan Forgiveness from organizations engaging in activities that have “a substantial illegal purpose. ” Representatives from certain interest groups, including consumer advocates, borrowers and servicers, will debate the plan and its implications for the future of PSLF next week

The Author Jillian BermanJillian Berman is assistant managing editor, news enterprise, at MarketWatch, where she covers student loans and consumer debt

Her book on the student debt crisis, Sunk Cost, will be published in April 2025

You can her on Twitter @JillianBerman

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