The Trump administration seeks to end the popular Public Service Loan Forgiveness (PSLF) program, which allows government workers, Native American tribal employees and nonprofit workers to earn forgiveness of their student debt.
The White House’s budget proposal for fiscal year 2021, which was released on Monday, would completely eliminate the program, which the administration estimated would save a little more than $1.9 billion over the course of the year.
PSLF applicants are eligible for forgiveness of their student loans after making 120 qualifying monthly payments and working for a set period of time as a full-time employee of the government, a nonprofit, or a tribal organization. The program is also open to AmeriCorps and Peace Corps volunteers.
Loans covered under the PSLF do not qualify if they are from private lenders, among other restrictions.
The Trump administration previously proposed eliminating the PSLF in the fiscal 2020 budget and has done so in previous years as well, though the White House has so far been unsuccessful in its efforts.