WASHINGTON – A proposed regulation could prevent individuals with outstanding student loans from receiving debt relief if their employers are found to be “undermining national security and american values through illegal means.”

The Department of Education announced the proposed rule, which would place restrictions on participation in the federal Public Student Loan Forgiveness (PSLF) program for individuals employed by organizations involved in specific illegal activities.

According to Under Secretary of Education Nicholas Kent,”President Trump has given the Department a historic mandate to restore the Public Service Loan Forgiveness program to its original purpose – supporting public servants who strengthen their communities and serve the public good,not benefiting businesses engaged in illegal activity that harm americans.”

The PSLF program, established in 2007 under President George W. Bush, is designed to alleviate student loan debt for public employees, including teachers and police officers.

The proposed rule outlines examples of activities considered illegal, possibly disqualifying an organization’s employees from PSLF eligibility. These include aiding and abetting terrorism, violating immigration laws, and what the rule describes as the “chemical and surgical castration or mutilation of children.”

Individuals employed by organizations deemed ineligible for PSLF could still participate if they switch to an eligible employer, as per the proposed rule.

President Trump initiated the rulemaking process in March with an executive order directing the Secretary of Education to revise the PSLF program. The Education Department is accepting public comments on the proposed rule until September 17.

The Department of Education stated that the proposed regulations are necessary to uphold the original intent of the PSLF program, which is to reward public service and ensure that tax dollars do not support organizations engaged in “unlawful activity.”

The Education Department stated that “The proposed rules would halt PSLF benefits to employees of organizations that are undermining national security and American values through illegal means, and thus not providing a public service.”

Critics argue that the regulation could allow Education Department officials to improperly exclude public servants from loan relief. The Student Borrower Protection Centre,stated in a July blog post that the rule would grant the Education Department broad authority to restrict funding to groups whose work conflicts with the Trump administration’s agenda.

Winston Berkman-Breen, legal director of the Student borrower Protection Center, stated in a June 30 public hearing on the proposal, “To be clear, if implemented this proposal would allow the secretary [of education] to disqualify from PSLF any employees of school systems that accurately teach the U.S.’ history of slavery, of health care providers who offer gender-affirming care and of legal aid organizations that represent individuals against unlawful deportations.”

The public service loan program, introduced as part of the College Cost Reduction and Access Act of 2007, forgives outstanding debt for borrowers who make 120 monthly payments, or 10 years’ worth of payments. The program currently provides benefits to all government employers and all qualifying 501(c)(3) employers.

“The proposed rules would halt PSLF benefits to employees of organizations that are undermining national security and American values through illegal means…”