Executive Order 14235 aims to modify the Public Service Loan Forgiveness (PSLF) Program by narrowing eligibility criteria to exclude organizations engaged in activities the order characterizes as having "a substantial illegal purpose." The order frames the previous administration's implementation of PSLF as having "abused" the program through waivers that forgave loans before the statutorily required ten years of payments were completed. It further claims the program has "misdirected tax dollars into activist organizations" that the order asserts harm national security and American values, sometimes through allegedly criminal means. The order also contends that PSLF creates "perverse incentives" that potentially increase tuition costs and saddle students with unsustainable debt.
Specifically, the order directs the Secretary of Education to propose revisions to the PSLF Program regulations (34 CFR 685.219) that would exclude from the definition of "public service" organizations that engage in five categories of activities: (1) aiding violations of federal immigration laws; (2) supporting terrorism or engaging in violence to influence government policy; (3) what the order terms "child abuse," including gender-affirming care for minors and assisting minors seeking such care without parental consent; (4) aiding illegal discrimination; and (5) engaging in a pattern of state tort law violations, including trespassing, disorderly conduct, public nuisance, vandalism, and highway obstruction. The order requires coordination with the Secretary of the Treasury as appropriate in developing these regulatory revisions.
The implementation responsibility falls primarily to the Secretary of Education, who must propose the regulatory changes through standard rulemaking procedures. The order includes standard provisions clarifying that it does not impair existing agency authorities or the functions of the Office of Management and Budget, must be implemented consistent with applicable law and available appropriations, and does not create any enforceable rights or benefits. By redefining eligibility criteria for PSLF rather than eliminating the program entirely, the order represents an attempt to narrow the program's scope while maintaining its statutory foundation, though the specific organizations that would be affected and the precise implementation details would be determined through the subsequent regulatory process.