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Trump Administration Tightens Public Service Loan Forgiveness, Stranding Borrowers
The Trump Administration has officially narrowed the eligibility criteria for the Public Service Loan Forgiveness program, impacting many government and nonprofit organization workers relying on student loan relief.
- On October 30, the United States Department of Education announced new rules limiting the Public Service Loan Forgiveness program, affecting thousands of borrowers in Massachusetts and beyond.
- The changes redefine public service eligibility, complicating the path for many nonprofit organization employees who expected student loan forgiveness after 10 years of payments.
- This announcement follows an executive order signed by Donald Trump in March, which aims to tighten regulations on student loan forgiveness and has prompted discussions of a potential lawsuit by affected borrowers.
Why It Matters
The restrictions on the Public Service Loan Forgiveness program could leave many public servants without the expected financial relief, exacerbating the student loan crisis and impacting workforce stability in essential sectors like education and healthcare.