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A new rule may block public service workers from student loan forgiveness if their nonprofits are deemed to have illegal purposes, like aiding immigration or gender-affirming care, starting July 2026.
The Trump administration has finalized a rule set to take effect in July 2026 that could block public service workers, including teachers and nonprofit employees, from federal student loan forgiveness if their organizations are deemed to have a "substantial illegal purpose."
The policy allows the education secretary to exclude nonprofits based on activities like aiding illegal immigration or providing gender-affirming care to minors—defined as "chemical castration"—using a "preponderance of evidence" standard, even without a court ruling.
The rule aims to ensure taxpayer funds support traditional public service roles, but critics warn it grants broad discretion that could enable political bias and discourage work in critical public interest fields.
Una nueva regla puede bloquear a los trabajadores del servicio público del perdón de préstamos estudiantiles si se considera que sus organizaciones sin fines de lucro tienen propósitos ilegales, como ayudar a la inmigración o la atención afirmativa de género, a partir de julio de 2026.