DateIssued:March7,2025
Topic:Education,EconomicOpportunity
WHATDOESTHISEXECUTIVEORDERDO?
CongressestablishedthePublicServiceLoanForgivenessprogram (PSLF)in2007toincentivizehighlyskilledworkerstotakejobsinthe publicsector.Aftertenyearsofstudentloanpayments,theprogram forgivestheremainingloanbalancesforemployeesofgovernment agenciesandmanynonprofits.
ThisorderamendstheeligibilitycriteriaforthePSLFtoexclude organizationsthatengagein“improper”orillegalactivity.
Theordertargets“activistorganizations”thatengagein“illegal discrimination,”includingdiversity,equity,andinclusionwork.Theorder alsoalludestoremovingorganizationsthatparticipateincivil disobedienceorprotestsfromPSLFeligibility,citingorganizationsthat violatelawsagainstdisorderlyconductandobstructionofhighways.
Theorderalsosinglesoutorganizationsthatsupportimmigrantsofall legalstatuses,statingthatthosethat“supportterrorism,”including cartels,andthosethatare“aidingorabettingviolationsofFederal immigrationlaws”donotqualifyforPSLF.Theorderspecificallycites8 U.S.C.1325,alawstatingthatunlawfulentryintotheUnitedStatesisa misdemeanoroffense.
Theorderreferstoorganizationsthatassisttransgenderchildrenin accessinggender-affirmingcareasengaginginchildabuseandmoves toexcludetheiremployeesfromthePSLFprogram.
HOWWILLTHISEXECUTIVEORDERBEENFORCED?
Thisorderwouldamendfederalregulationstostipulatethatthedefinition of“publicservice”underPSLFexcludesorganizationsthat“engagein activitiesthathaveasubstantialillegalpurpose.”Expertsanticipatethat thischangewillnottakeeffectforatleastoneyear.
TheorderwillbeenforcedbytheSecretaryofEducation,whowas instructedtorevisethecode.TheorderpermitstheSecretaryofEducation tocoordinatewiththeSecretaryoftheTreasurywhereappropriateto proposerevisionstothefinancialcomponentsoftheprogram.
HOWDOESTHISIMPACTBLACKCOMMUNITIES?
Thisorderhassignificantimplicationsforthemorethan8millionBlack borrowerswhocurrentlyhavestudentloandebt.Blackpeopleare historicallyoverrepresentedinthefederalworkforce.In2020,theBureau ofLaborStatisticsreportedthatnearly20%ofpublicsectorworkerswere Black.ThePSLFprogramwasdesignedtorewardpublicsector employeesfortheirservicetothecountrybyalleviatinganyremaining studentloandebtafter120payments.Thisexecutiveorderpunishes publicservantswhoworkfororganizationsthatdon’talignwithPresident Trump’spolicypositionsandwillhaveadeleteriouseffectonBlack Americansforyearstocome.
Blackstudentsarebothmorelikelytotakeoutloansandleavecollege withmoredebtthantheirwhitepeers.Thisgaponlyworsensovertime.A studyfromtheBrookingsInstitutionfoundthattheBlack-whitedisparity instudentloandebtmorethantriplesfouryearsaftergraduation.The long-termeffectsofstudentloandebtcontributetotheracialwealth gapandcancreatenegativeeconomicandpsychologicaloutcomesfor BlackAmericans.StudentdebtcandelayretirementforBlackworkers, andhighinterestratescanballooncosts,whichisassociatedwithhigher ratesofdepressionandanxiety.Bynarrowingtheeligibilitycriteriaforthe PLSFprogram,theTrumpAdministrationhassaddledagenerationof Blackpublicservantswithagreaterfinancialburden.
HOWARECBCMEMBERSRESPONDING?
TheCongressionalBlackCaucus(CBC)hasdemonstrateda longstandingcommitmenttoadvancingequityineducation,specifically relatedtostudentloanforgiveness.In2022,theCBCreleasedthe followingstatementpraisingformerPresidentJoeBiden’sstudentdebt forgivenessplan.
“TheCongressionalBlackCaucushasremainedattheforefrontofthe fightforstudentloanforgiveness,regularlymeetingwiththePresident andhisexecutiveteamtoensurethisissueremainsapriority.The BidenAdministration’sStudentLoanDebtPlanwillprovidemuchneededrelieftoBlackborrowers.[…]Theburdenofstudentloandebt hasdisproportionatelyimpactedBlackborrowersforfartoolong, leavingmanystuckwiththousandsofdollarsofdebt,hinderingtheir abilitiestoplanforthefutureandbuildintergenerationalwealth.[…]
TheCongressionalBlackCaucusremainscommittedtoachieving additionalreformstoensurecurrent,andfutureborrowersarenot subjectedtothiscycleofburdensomedebt,andwethanktheBiden Administrationfordeliveringthisvictoryforsomanyfamilies.”Full Statement
ToreadmoreabouttheCBC’slegacyoneducationpolicyissues,visit Avoice,ourvirtuallibrary.
