As CARA continues to keep an eye on policy changes affecting postsecondary access and success, one that is concerning us is changes in public service loan forgiveness, which has helped countless young people who choose to work in sectors that contribute a great deal to society, but do not pay commensurate wages.

The Public Service Loan Forgiveness (PSLF) program was created in 2007 to offer student loan relief for college graduates working full-time in public service. Individuals must work for a qualifying employer, which has included government organizations/agencies and charitable organizations.

Since President Donald Trump’s inauguration in January 2025, the administration has sought to limit which employers qualify for PSLF. On October 31st, the Department of Education finalized a new set of regulations prohibiting employers that have a “substantial illegal purpose” from participating in the program. These activities have been defined as “aiding and abetting violations of immigration or civil rights law, supporting terrorism, providing gender-affirming care, or ‘trafficking’ children from one state to another for purposes of emancipation,” according to Inside Higher Ed; they potentially include the work of many nonprofits.

Student loan forgiveness policies were meant to incentivize college graduates to pursue career fields that serve the public, including teaching and postsecondary access among others. At the same time that these fields are being limited, new ICE recruits are being offered $60,000 in student loan forgiveness. Military service has been promoted through college debt forgiveness since 1944, but this move is especially significant at a moment of economic uncertainty and the closing off of other avenues for higher education debt forgiveness.

Fortunately, there are challenges to these new limits to PSLF. Both the New York state government and a coalition of nonprofits are pursuing legal action in order to keep PSLF an option for workers who provide crucial support to their communities. We will continue to watch what unfolds in the months ahead.