US President Donald Trump has issued an executive order restricting access to the Public Service Loan Forgiveness (PSLF) program, significantly altering its scope.

The PSLF program, which forgives student debt for certain professionals—including teachers, healthcare workers, and law enforcement—after 10 years of qualifying payments, had around 2 million participants as of December 2024, per Business Insider.

Trump’s order bans organizations involved in “illegal immigration, terrorism, child abuse, discrimination, and public disturbances” from benefiting under PSLF. It further argues that the program drives up tuition costs, burdens students in low-demand fields with unsustainable debt, and allows nonprofits to exploit federal benefits while harming national interests.

Additionally, the directive tasks Education Secretary Linda McMahon with redefining what qualifies as “public service,” potentially reshaping loan forgiveness eligibility.

Critics, including Student Defense president Aaron Ament, argue that PSLF was established through bipartisan legislation, and many borrowers made life choices expecting federal commitments to be honored. Legal challenges against the order are being considered.

This move is not Trump’s first attempt to curb PSLF. During his previous term, he proposed eliminating it entirely, but congressional approval was required. The Biden administration later introduced a waiver to count previously ineligible payments toward forgiveness, addressing past backlogs in application processing.

The new restrictions are expected to impact thousands of borrowers and may ignite further legal and political battles.