New Trump Administration Rulemaking Would Undermine Critical Public Services, Aims to Advance Project 2025 Agenda, Stripping Rights from Working People with Student Debt
May 5, 2025 | WASHINGTON, D.C. — Last night, 186 democracy, labor, civil rights, student, economic justice, and other organizations issued a dire warning to the U.S. Department of Education (ED), as Trump Administration officials prepare a radical overhaul of the student loan safety net, including the Public Service Loan Forgiveness program (PSLF). This letter, led by Student Borrower Protection Center (SBPC) and Democracy Forward, was filed in response to ED’s notice of its intent to establish Negotiated Rulemaking to implement an Executive Order by President Trump. The Executive Order seeks to retaliate against workers and organizations across the country that support people and communities in marginalized and economically vulnerable circumstances, and who have been targeted by Trump Administration executive actions.
“Efforts to limit access to or weaponize PSLF will threaten critical public service fields and harm our most vulnerable communities,” the 186 democracy, labor, and civil rights organizations wrote. “[We are] incredibly troubled to see President Trump’s Executive Order aimed at limiting access to PSLF for public service workers employed at organizations engaging in work that is not in line with President Trump’s agenda.”
A copy of the letter submitted to the Federal Register can be found here: https://protectborrowers.org/coalition-comment-letter-intent-to-establish-negotiated-rulemaking-2025/
To view borrower remarks, see our live tweet thread on Tuesday and Thursday’s sessions, and downloadable clips can be found here: https://drive.google.com/drive/folders/11k45x9aVRbjll_D8NMIyXwxkmSpM0Od6?usp=sharing
The organizations also warned about the Trump Administration’s broader effort to strip away key protections for student loan borrowers, raising costs for borrowers, their families and their communities—all in furtherance of the President’s extreme Project 2025 agenda.
“We write in strong opposition to the Trump Administration’s attempts to implement Project 2025, which calls for gutting Income-Driven Repayment (IDR) options and ultimately eliminating PSLF, which will only push borrowers further into debt and relief further out of reach,” the 186 democracy, labor, and civil rights organizations continued. “The Administration should move to enact policies that better protect student borrowers, rather than pursue misguided policies that will drive up costs and weaken protections.”
Background
President Trump directed the U.S. Department of Education (ED) to initiate this rulemaking in an Executive Order to revoke eligibility for Public Service Loan Forgiveness (PSLF) from borrowers employed at non-profit organizations engaging in work opposed by the Trump Administration. It comes amidst the Trump Administration’s active broader efforts to enact the Project 2025 agenda which calls for eliminating ED, and gutting Income-Driven Repayment (IDR) options and PSLF.
Moreover, right-wing attacks on President Biden’s Saving on A Valuable Education (SAVE) plan, have left the IDR programs in disarray and borrowers without meaningful access to vital affordable repayment options.
AFT filed a lawsuit against ED, challenging the administration’s illegal move to block access to IDR plans—a move that has left millions of borrowers stranded without affordable repayment options and pushed PSLF out of reach. Since filing its lawsuit, ED has restored IDR applications but has yet to begin processing those applications. It estimates that processing will begin after May 10, as more than 1 million borrowers remain in limbo and unable to invoke their rights to affordable loan payments.
Last week, ED kicked off the Negotiated Rulemaking process with two days of public hearings. Borrowers and advocates provided public testimony on the importance of IDR and PSLF.
Further Reading
SBPC advisory on Negotiated Rulemaking hearings: Borrowers and Advocates to Demand Protections for Millions at Neg Reg as ED Moves to Gut Affordable Student Loan Payments
AFT and SBPC statement on PSLF Executive Order: Advocates Blast Trump Plans to Sign Executive Order to Weaponize Public Service Loan Forgiveness and Stifle Free Speech Across America
Democracy Forward’s Project 2025 guide: Project 2025 is among the most profound threats to the American people
SBPC press release on removal of IDR applications: Trump Administration Denies Access to Affordable Repayment Plans in Extreme Response to Right-Wing Court Order
AFT and SBPC press release on lawsuit against ED for blocking IDR applications: AFT Sues U.S. Department of Education, Demands Justice for Student Loan Borrowers Blocked from Affordable Loan Payments
AFT and SBPC press release on ED restoring IDR applications: AFT v. ED Update: Under Pressure, ED Will Restore IDR Application Tomorrow But Will Not Immediately Resume IDR Paperwork Processing
SBPC press release on polling Congressional Republicans’ proposed budget cuts: NEW POLL: Overwhelming, Bipartisan Majority Reject Cuts to the Student Loan Safety Net and Financial Aid Students and Families Rely On
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About Student Borrower Protection Center
Student Borrower Protection Center (SBPC) is a nonprofit organization focused on eliminating the burden of student debt for millions of Americans. We engage in advocacy, policymaking, and litigation strategy to rein in industry abuses, protect borrowers’ rights, and advance racial and economic justice.
Learn more at protectborrowers.org or follow SBPC on Twitter @theSBPC.
About Democracy Forward
Democracy Forward is a national legal organization that advances democracy and social progress through litigation, policy, public education, and regulatory engagement. For more information, please visit www.democracyforward.org.