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National Women's Law Center Condemns Education Department's Ruling on Public Student Loan Forgiveness Program

Strategic Insights

— 1 min read

The Department of Education's new ruling allows the Education Secretary to exclude non-profit and government employers from participating in the Public Service Loan Forgiveness program, sparking outrage from advocacy groups. The ruling expands the Department's power, allegedly weaponizing a program that has helped millions of borrowers employed by public service organizations, including non-profits, the military, the Peace Corps, local and state governments, and social services. The National Women's Law Center (NWLC) strongly opposes this change, arguing that it unfairly burdens hundreds of thousands of Americans who serve the public interest with billions of dollars in debt.

Key Takeaways:

  • The Department of Education's final rule allows the Education Secretary to exclude select non-profit and government employers from participating in the Public Service Loan Forgiveness program.
  • The ruling is opposed by 63 civil rights and advocacy organizations, including the National Women's Law Center (NWLC).
  • The program has assisted student loan debt from borrowers employed by public service organizations, including non-profits, the military, the Peace Corps, local and state governments, and social services.
  • The NWLC claims that the Department is unlawfully undermining the Public Service Loan Forgiveness program, inserting an ideological test and threatening organizations whose work does not align with the Trump administration's agenda.
  • The effects of this rule will be felt widely and will disproportionately harm marginalized people, including Black, brown, indigenous, LGBTQ+, immigrant, low-income communities, and people with disabilities.
  • The NWLC warns that this ruling will hurt state and local governments and non-profit organizations, ultimately harming the communities they serve.

Statistics:

  • Hundreds of thousands of Americans who serve the public interest will be unfairly burdened with billions of dollars in debt.
  • 63 civil rights and advocacy organizations submitted comments opposing the change prior to the rule being formalized.
  • Americans employed by public service organizations, including non-profits, the military, the Peace Corps, local and state governments, and social services, have been assisted by the Public Service Loan Forgiveness program.

Sources:

  • National Women's Law Center (NWLC), NWLC Condemns Education Department's Targeted Exclusion of Non-Profits from Public Student Loan Forgiveness Program, nwlc.org (accessed October 30, 2022)

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