Executive Order 14235
Restoring Public Service Loan Forgiveness
Signed on March 07, 2025
On March 7, 2025, President Trump signed Executive Order 14235 directs the Department of Education to revise the Public Service Loan Forgiveness (PSLF) Program. The order narrows the eligibility criteria for loan forgiveness by excluding employees of organizations deemed to have a “substantial illegal purpose,” including those related to immigration, civil rights, and certain healthcare services.
🔗 Read the Executive Order on the Federal Register
🔗 Read the White House Announcement
What You Should Know
This order drastically limits who qualifies for student loan forgiveness.
The PSLF Program was designed to incentivize public service work by forgiving remaining student loan balances after 10 years of payments for employees in qualifying non-profit and government jobs. This executive order redefines “public service” to exclude employees of organizations that the administration deems to be engaged in “substantial illegal activity,” which could include those that provide immigration assistance, civil rights advocacy, gender-affirming healthcare, or certain protest movements. By narrowing eligibility, this order effectively strips thousands of public servants of the benefits they were promised when they chose careers in education, healthcare, and social services.
The administration is using vague, politically motivated criteria to justify these exclusions.
The order claims that organizations engaged in activities like “aiding illegal immigration” or “facilitating child abuse” should not be eligible for PSLF, but these terms are deliberately broad and misleading. In reality, this language could be used to target legal aid groups helping migrants, healthcare providers offering gender-affirming care, and civil rights organizations defending protest rights. By labeling these activities as “illegal,” the administration is injecting political ideology into a program meant to encourage careers in public service.
Many borrowers who were counting on loan forgiveness will now face financial hardship.
Public service workers, including teachers, social workers, and healthcare professionals, take on lower salaries in exchange for loan forgiveness under PSLF. By changing the definition of qualifying employment, this order leaves many of them with no relief in sight, forcing them to pay off their full student loan balances. The impact will be particularly devastating for those who chose careers in non-profits or advocacy organizations based on PSLF eligibility.
This order prioritizes political retaliation over economic relief.
The PSLF Program was established to support professionals serving their communities, yet this order weaponizes the program to punish organizations and individuals who align with causes the administration opposes. Instead of addressing real issues like rising tuition costs or student debt burdens, this move targets those working in social justice, immigration reform, and LGBTQ+ rights.
Who Wins?
Right-wing political groups and anti-immigration organizations
This order is a direct attack on organizations that support immigration rights, civil liberties, and social justice. By cutting off loan forgiveness for employees of these groups, the administration is discouraging young professionals from working in these fields, ultimately weakening advocacy efforts.
Private student loan servicers and financial institutions
The rollback of PSLF eligibility means that fewer borrowers will qualify for forgiveness, forcing them to continue making payments on their student loans for decades. This benefits private lenders and loan servicers who profit from prolonged repayment periods and interest accumulation.
Conservative think tanks and legal groups pushing for the elimination of PSLF
Many right-wing organizations have long opposed the PSLF Program, arguing that it unfairly subsidizes certain career paths. By gutting eligibility, this executive order moves closer to their goal of eliminating PSLF altogether.
Who Loses?
Public service employees, including teachers, social workers, and healthcare professionals
Many workers in public service fields rely on PSLF to manage their student debt. This order denies them the financial relief they were promised, making it harder for these critical professions to attract and retain talent.
Non-profit organizations focused on immigration, civil rights, and healthcare
Organizations providing essential services to marginalized communities will struggle to recruit and retain employees if PSLF benefits are stripped away. This could lead to a reduction in available services, harming the very people these groups aim to help.
Low-income and marginalized communities
By undermining the PSLF Program, this order discourages professionals from working in non-profits and public service fields that primarily assist low-income and vulnerable populations. This could lead to fewer healthcare providers in underserved areas, reduced legal aid services, and weakened advocacy for marginalized communities.
Executive Order 14235 does not “restore” the PSLF Program—it guts it. By narrowing the definition of public service, the administration is using student debt as a political weapon to target organizations and workers it disagrees with. The result is fewer public servants receiving the relief they were promised, more financial hardship for those who dedicated their careers to helping others, and a chilling effect on advocacy organizations. This move is not about fiscal responsibility or program integrity—it is about silencing opposition and punishing those who work to uphold civil rights and social justice.
Take Action
Check your PSLF eligibility and explore alternative repayment options
If you are currently enrolled in PSLF, verify whether your employer is still eligible under these new rules. If your eligibility is revoked, consult with financial aid advisors and explore income-driven repayment plans or refinancing options.
Support legal challenges against this executive order
Several organizations are already preparing lawsuits to challenge the legality of these restrictions. Supporting groups like the American Civil Liberties Union (ACLU) or student loan advocacy organizations can help fight back against these changes.
Contact your representatives and demand legislative action
Congress has the power to protect the PSLF Program through legislation. Call or email your elected officials and urge them to oppose these politically motivated changes and support laws that preserve loan forgiveness for public service workers.
Spread awareness and fight misinformation
Many people affected by this order may not yet realize how it impacts them. Share accurate information, connect with others in affected fields, and push back against misleading claims that frame this as a necessary reform.
Student loan forgiveness should be about supporting those who serve the public, not about scoring political points. This administration is using student debt as a weapon to punish workers in advocacy, social justice, and public service. Stay informed, get involved, and hold those in power accountable for the real consequences of their policies.
