The Trump administration is moving forward with plans to remove certain NGOs from a popular student loan forgiveness program if their operations are judged to have a “substantial illegal purpose.”
This action may prevent certain public employees, including teachers and doctors, from receiving federal loan cancellation.
The Education Department now has more authority to exclude organizations from the Public Service Loan Forgiveness program because to new regulations that were finalized on Thursday.
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According to the Trump administration, it is essential to keep government funds away from criminals. The program becomes a vehicle of political retaliation, according to critics.
The policy, which will take effect from July, is mainly targeted at organizations that assist transgender youths and immigrants.

It gives the education secretary the authority to bar organizations from participating in the program if they support terrorist groups, engage in illegal immigration, or traffic in or “chemically castrate” youngsters. “Chemical castration” refers to the use of medications or hormone therapy to postpone puberty, which is a frequent gender-affirming treatment for transgender children and teenagers.
Following this, Education Undersecretary Nicholas Kent said in a statement that the student loan “was meant to support Americans who dedicate their careers to public service – not to subsidize organizations that violate the law, whether by harboring illegal immigrants or performing prohibited medical procedures that attempt to transition children away from their biological sex”
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According to Michael Lukens, executive director of the Amica Centre for Immigrant Rights, the new regulations are weaponizing student loan forgiveness to make it more difficult for organizations that support topics like transgender and refugee rights.
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