Student loan forgiveness is now off-limits for people working at illegal organizations
What happened
The US Education Department has tightened rules for the Public Service Loan Forgiveness program. This means people working for organizations engaged in substantial illegal activities will no longer qualify for student loan forgiveness.
Why it matters
The Public Service Loan Forgiveness program was designed to encourage people to work in public service by erasing their student debt after ten years. This rule change clarifies that 'public service' does not include organizations that break the law. It means fewer people will qualify for the program, and the government can claw back benefits from those who previously received them while working for illegal entities.
The signal
Watch for the first public determinations by the Education Department that an employer is no longer qualifying, and how many borrowers are affected.