Student loan cancellation program could become Trump retribution tool, some advocates fear
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Public Service Loan Forgiveness allows government employees, such as teachers and firefighters, plus many who work for nonprofits, to have their student loans canceled after they’ve made payments for 10 years. The Education Department is preparing an overhaul that would strip the benefit from organizations involved in “illegal activities,” with the final determination left up to the U.S. education secretary. A draft proposal released by the department includes definitions of illegal activity that center on immigration, terrorism and transgender issues.
Several advocates invited to weigh in on the draft proposal raised concerns it would give the department subjective authority to decide if an organization is engaged in anything illegal — a power that could be used to remove entire hospital systems or state governments from the program.
“That’s definitely an indicator for me that this is politically motivated and perhaps will be used as a tool for political punishment,” said Betsy Mayotte, president of the Institute of Student Loan Advisors and one of the advocates asked to review the policy as part of a rulemaking process.
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Congress created the program in 2007 to encourage college graduates to work in the public sector, where salaries are often lower than at for-profit companies. The program promises to cancel all remaining debt after borrowers make 120 monthly loan payments while working for any level of government. Currently, nonprofits also are eligible if they focus on certain areas including public interest law, public health or education.
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https://apnews.com/article/student-loan-forgiveness-public-service-trump-145f6a07a477e5c82f4374bc89e1eea7
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