• President Trump signs an executive order restricting student loan forgiveness for certain nonprofit workers.
• The order targets organizations involved in activities deemed "illegal" by the administration.
• Critics warn that this move could infringe on workers' rights and impact public service careers.

President Donald Trump has officially signed an executive order that limits eligibility for the Public Service Loan Forgiveness (PSLF) program, effectively disqualifying LA Times workers from certain nonprofit organizations. Under this directive, individuals employed by organizations deemed to engage in “improper activities,” such as assisting illegal immigration or promoting terrorism, will no longer qualify for loan forgiveness after a decade of service.

The PSLF program was established by Congress in 2007 to encourage public sector employment. It allows government and nonprofit employees to have their remaining student loan balances wiped clean after ten years of qualifying payments. According to figures from the The Hill, over two million Americans currently participate in this program. This executive order, however, raises serious concerns about its implications for many who were hoping to benefit from this path to debt relief.

White House staff secretary Will Scharf indicated that this move is aimed at ensuring federal funds are not used to support organizations with “substantial illegal purposes.” The executive order explicitly instructs NPR Education Secretary Linda McMahon to redefine “public service” to reflect these new exclusions.

Student loan advocates have expressed outrage, arguing that this order serves as a targeted attack on nonprofit workers, many of whom serve marginalized communities. “Threatening to punish hardworking Americans for their employers’ perceived political views is about as flagrant a violation of the First Amendment as you can imagine,” said Aaron Ament, president of the National Student Legal Defense Network, in response to these changes.

Legal experts suggest that the order may not withstand judicial scrutiny, given that eligibility modifications typically require extensive rulemaking processes. Previous adjustments made by the Biden administration expanded the PSLF eligibility criteria significantly, resulting in over a million borrowers receiving debt relief, which starkly contrasts with the fewer than 7,000 approved during Trump's first term at the Business Insider.

This latest executive action aligns with Trump’s broader political goals as he attempts to reshape federal education policies. It remains uncertain what impact this will truly have on employment within the nonprofit sector, which has traditionally provided essential services to many vulnerable populations.

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