Trump Links Student Loan Relief to Immigration Policy in New Rule
President Donald Trump’s administration is set to implement new regulations affecting the federal student loan forgiveness program, particularly targeting nonprofits linked to immigration policy violations. This initiative, which will alter eligibility for the Public Service Loan Forgiveness Program, raises concerns among workers in the nonprofit sector.
Changes to Student Loan Relief Program
The Education Department’s regulation will take effect in July 2026. It excludes organizations deemed to be “aiding and abetting violations of federal immigration laws.” This shift means fewer nonprofit employees will qualify for student loan cancellation under the program.
Impact on Nonprofits
- Nonprofits that advocate for immigrants or provide legal representation will remain eligible.
- Decisions regarding eligibility will not be influenced by an organization’s political views or policies.
Approximately 43 million Americans currently hold federal student loan debt, according to the Congressional Research Service. This new condition is part of a broader trend within the Trump administration to enforce immigration-related requirements across various federal programs.
Legal Challenges Ahead
Democracy Forward, a legal organization with progressive views, has announced plans to contest this regulation in court. Previously, Trump had urged the Education Department to exclude borrowers affiliated with organizations engaging in significant illegal activities.
This latest development raises critical questions about the future of student loan relief and the implications for nonprofits operating in the immigration sector.
