NATIONAL NEWS – Trump proposes barring student loan forgiveness for employees at companies deemed to undermine “American values”

The Trump administration is pushing a controversial rule that could block graduates from receiving federal student debt forgiveness if their employers are found to engage in “illegal activities” deemed to undermine U.S. values. Announced by Education Secretary Linda McMahon’s department, the draft proposal would exclude workers from the Public Service Loan Forgiveness (PSLF) program if their organizations are accused of offenses such as supporting terrorism, violating immigration laws, or aiding discrimination.

The Education Department says the measure preserves PSLF’s intent to reward true public service, while critics argue it risks weaponizing the program along ideological lines. The Student Borrower Protection Center warned it could allow the administration to target teachers who accurately teach slavery, healthcare providers offering gender-affirming care, or legal aid groups assisting immigrants. The proposal is open for public comment until Sept. 17, as debate grows over whether it safeguards taxpayers or undermines free expression and equal access to debt relief.