New Trump administration rule bars student loan relief for public workers tied to 'illegal' activity

WASHINGTON -- The Trump administration is forging ahead with plans to eject some nonprofits from a popular student loan forgiveness program if their work is deemed to have a “substantial illegal purpose” — a move that could cut off some teachers, doctors and other public workers from federal loan cancellation. New rules finalized Thursday give the Education Department expanded power to ban organizations from the Public Service Loan Forgiveness program. The Trump administration calls it necessary to block taxpayer money from lawbreakers. Critics say it turns the program into a tool of political retribution . Set to take effect in July, the policy is aimed primarily at organizations that work with immigrants and transgender youth. It grants the education secretary power to exclude groups fro