Exec order seeks to roll back student loan forgiveness for nonprofits workers

What you probably already know: A new executive order issued by President Donald Trump would disqualify employees of nonprofit organizations from receiving federal student loan forgiveness if the president decides the organizations they work for have engaged in “improper activities.” Loan forgiveness would be stripped from anyone who works for a nonprofit that does work on illegal immigration or that work with any group tied to foreign terrorism. About 2 million Americans could be impacted by the order, depending on how the government decides to evaluate the nonprofit groups in question.

Why? Employees who work for nonprofit groups that work in certain areas, such as public interest law, public health or education, can qualify for federal student loan forgiveness if they make 10 years of payments. The same program, which is overseen by the Education Department, is also available to government workers, teachers, police, and pastors, and aims to provide incentives to those who work in these sectors, where the rate of pay is often lower than in the private sector. The ruling will disproportionately impact women because about 69% of all nonprofit employees identify as female.

What it means: Opponents of the president’s order are already calling it a “flagrant violation of the First Amendment,” and it is sure to face a legal challenge. Trump tried to end the program during his first term, when the first group of borrowers started hitting the 10-year mark in 2017. Most who applied for forgiveness were rejected because they failed to meet the criteria, which was later found to be unclear. President Joe Biden expanded eligibility during his time in office and approved many of those who had been previously denied forgiveness. He then forgave about 1 million people in his final week in office under the same rule.

What happens now? After her confirmation, Education Secretary Linda McMahon had stated that she would continue to maintain the program because it was federal law. When it was passed in 2007, the law had bipartisan support and was signed by then-President George W. Bush. The National Student Legal Defense Network sees Trump’s executive order as a way to punish Americans whose employers’ political views don’t align with his administration. “If the Trump Administration follows through on this threat, they can plan to see us in court,” the group said in a statement.