Student loan cancellation program could become Trump retribution tool, some advocates fear

WASHINGTON (AP) — President Donald Trump is reshaping a student loan cancellation program into what some fear will become a tool for political retribution, taking aim at organizations that serve immigrants and transgender youth.

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.

https://apnews.com/article/student-loan-forgiveness-public-service-trump-145f6a07a477e5c82f4374bc89e1eea7