Democrats seek to overturn Trump rules for student loan forgiveness
Democrats in Congress are moving to undo changes the Trump administration made to Public Service Loan Forgiveness, arguing that the new policy is political and could leave some borrowers without the relief they say the program promised. The effort comes as the administration prepares for a rule change that is set to take effect in July, affecting how the government determines which public-service employers qualify.
Public Service Loan Forgiveness is designed to cancel federal student loans for people who work in public service and make a decade of payments. The program has been available to borrowers in jobs that include government work, public schools, fire and police departments, public hospitals and nonprofits, according to the Associated Press.
Last fall, the Trump administration wrote a new rule, AP reported, that would empower Education Secretary Linda McMahon to remove employers from the program if she decides their work has a “substantial illegal purpose.” Democrats say the standard is too vaguely worded and that it could be used to target specific types of organizations.
In AP’s account, the rule is positioned to take effect in July and is described as potentially aimed at employers that support undocumented immigrants or transgender youth. Lawmakers warned that could affect Public Service Loan Forgiveness borrowers employed by schools, public hospitals and legal aid groups.
Democratic Sens. Tim Kaine of Virginia, Kirsten Gillibrand of New York and Cory Booker of New Jersey introduced a resolution in the Senate on Tuesday. A parallel House measure was introduced by Rep. Joe Courtney of Connecticut, Rep. Alma Adams of North Carolina and Rep. Scott Peters of California.
The Democrats’ resolution characterizes the Education Department’s rule as an effort to intimidate and punish certain organizations. The lawmakers’ goal is to overturn the change rather than to adjust it, AP reported.
Nicholas Kent, the Education Department’s higher education chief, disputed that framing. Kent equated the Democrats’ effort with “standing up for criminal activity” in a statement, and said the rule would be enforced neutrally, “without consideration of the employer’s mission, ideology or the population they serve.”
Kent said the policy is a “commonsense reform” intended to stop taxpayer dollars from subsidizing organizations he described as involved in terrorism, child trafficking and child mutilation procedures, which he said do irreversible harm to children. He also said the rule would be applied without regard to an employer’s mission or ideology.
Even if the Democratic measures get votes, AP reported they are unlikely to pass. Democrats and the administration continue to disagree over how Public Service Loan Forgiveness should evaluate employer eligibility and what role politics should play in the department’s enforcement decisions.