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National/ News/ Top Stories

Trump’s DOE will make LGBTQ+ nonprofit workers ineligible for student loan forgiveness

Ryan Adamczeski, The Advocate November 4, 2025

Donald Trump‘s Department of Education has unveiled a new policy that will make workers of LGBTQ+ nonprofits ineligible for student loan forgiveness.

The department will publish a rule tomorrow in the Federal Register that would allow the Secretary of Education, Linda McMahon, to disqualify government and nonprofit employers that do not align the Trump administration’s agenda from participating in the Public Service Loan Forgiveness (PSLF) program.

While no specific organizations have yet been named publicly as ineligible for PSLF under the rule, LGBTQ+ organizations operating as 501(c)(3) nonprofits are likely to be targeted. Even large legal groups like the American Civil Liberties Union or Lambda Legal working to legally protect gender-affirming care could be misconstrued as the “subsidization of illegal activities.”

“This is a direct and unlawful attack on nurses, teachers, first responders, and public service workers across the country,” Democracy Forward and Protect Borrowers said in a joint statement. “Congress created the Public Service Loan Forgiveness (PSLF) program because it is important for our democracy that we support the people who do the hard work to serve our communities.”

“This new rule is a craven attempt to usurp the legislature’s authority in an unconstitutional power grab aimed at punishing people with political views different than the administration’s,” it continued. “In our democracy, the president does not have the authority to overrule Congress. That’s why we will soon see the Trump-Vance administration in court.”

The Public Service Loan Forgiveness (PSLF) program forgives the student loans of those who work for federal, state, tribal, or local government, or for non-profit organizations, after they’ve made payments for ten years (120 payments). The program was created as part of the 2007 College Cost Reduction and Access Act and signed into law by President George W. Bush as a way to encourage students to pursue careers in public service.

Related: Federal student loan restrictions will disproportionately impact LGBTQ+ adults 

Trump signed an executive order in March that drastically limits who qualifies for PSLF, preventing forgiveness for people who work at organizations that engage in the supposed “subsidization of illegal activities, including illegal immigration, human smuggling, child trafficking, pervasive damage to public property, and disruption of the public order.” 

The order directly singled out organizations that assist trans people, including with gender-affirming care, which it falsely refers to as “child abuse, including the chemical and surgical castration or mutilation of children.”

More than one-third (35 percent) of LGBTQ+ adults ages 18 to 40 — an estimated 2.9 million — held more than $93.2 billion in federal student loans at the beginning of the Biden Administration, according to a March report from the Williams Institute and the Point Foundation, including over half (51 percent) of trans adults, 36 percent of cisgender LBQ women, and 28 percent of cisgender GBQ men.

Luis Vasquez, Senior Legal Writer for the Human Rights Campaign, told The Advocate that “this rule is simply about bullying LGBTQ+ people and nonprofits and other progressive groups and making life more difficult for those who Donald Trump dislikes.”

“The result is that it would keep talented people from pursuing careers in public service, fearing that they may suddenly lose eligibility for this program on a whim,” Vasquez said. “The administration is once again going beyond what Congress has authorized, pursuing a discriminatory policy without legal basis. This hurts innocent people and should be rescinded immediately.”

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