U.S. President Donald Trump delivers remarks in the Oval Office of the White House in Washington, D.C., U.S., March 7, 2025.
Leah Millis | Reuters
President Donald Trump is expected to sign an executive order later Friday excluding certain student loan borrowers from the popular Public Service Loan Forgiveness program.
Speaking from the Oval Office, Trump accused the PSLF program of including organizations that “engage in illegal, or what we would consider to be improper, activities.”
PSLF, which President George W. Bush signed into law in 2007, allows many not-for-profit and government employees to have their federal student loans canceled after 10 years of payments.
In his first few months in office, Trump has cracked down on illegal immigration as well diversity efforts across the public and private sector. Many nonprofits work in these spaces, providing legal support or doing advocacy and education work.
Consumer advocates were quick to criticize Trump’s move.
“Donald Trump is weaponizing debt to police speech that does not toe the MAGA party line,” Mike Pierce, co-founder and executive director of the Student Borrower Protection Center, wrote on X. “Our Democracy is on fire.”
The White House did not immediately respond to a request from CNBC for comment.