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By Suzanne Blake
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While student loan borrowers have been worried about what Donald Trump's presidency means for their loans, one student loan forgiveness program appears to have been spared under the new administration.
During Linda McMahon's confirmation hearing for education secretary, she said she would continue to uphold the program despite any potential interference from Trump's recently formed Department of Government Efficiency (DOGE).
Why It Matters
The Public Service Loan Forgiveness (PSLF) program is available to federal borrowers working full time in public service.
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With many teaching, government, nursing, firefighting and military jobs in public services offering low pay, the student loan forgiveness incentivizes graduates to enter these fields while working toward total loan forgiveness.
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What To Know
During McMahon's confirmation hearing for education secretary, Democratic Senator Tim Kaine of Virginia questioned the nominee on how the PSLF program could change under her administration's Education Department.
"If the DOGE brothers or somebody else tells you, 'We don't like these programs and we don't want you to implement them,' I can count on you to stand up and fully implement them?" Kaine said.
"Yes, because that's the law," McMahon said, signaling the program would remain intact even under a Trump-era Department of Education.
"We certainly should honor those programs," McMahon said. "And if we want stronger or more programs for loan forgiveness, then I think Congress should pass those programs and then we would implement it."
McMahon comes to the education secretary position with little background in education policy. While she served roughly one year on the Connecticut State Board of Education, she spent most of her career as cofounder of World Wrestling Entertainment (WWE) alongside her husband, Vince McMahon. McMahon also spearheaded the Small Business Administration during Trump's first term.
Trump and his newly formed DOGE have made consistent statements about restructuring and dismantling the Education Department, but McMahon said the PSLF program and Pell Grants for low-income college students would be preserved even if the department changes form.
"We'd like to make sure that we are presenting a plan that I think our senators could get on board with, and our Congress could get on board with, that would have a better functioning Department of Education," McMahon said.
During Trump's first term, Secretary of Education Betsy DeVos called to abolish the PSLF program. Democrats also accused the former official of purposefully walking back on the forgiveness option because 99 percent of borrowers who applied for it were denied.
Former President Joe Biden's Education Department saw more than 1 million borrowers get their debts cleared since 2021 under the PSLF.
Congress first approved the program in 2007 under former President George W. Bush.
Who Is Eligible for PSLF?
The PSLF program allows borrowers to have their federal student loans forgiven if they work for a qualifying public service employer and make 120 qualifying monthly payments.
In recent years, the U.S. government approved more than $42 billion in student loan forgiveness for more than 615,000 borrowers through the program.
How to Apply for PSLF
To apply for the PSLF program, you'll need a federal student aid account. Once you log in, you can click on the PSLF Help Tool to sign your form.
As long as you have an employer certify your full-time employment and have a federal direct loan, your application is likely to be approved.
What People Are Saying
McMahon said during her confirmation hearing: "We certainly should honor those programs. And if we want stronger or more programs for loan forgiveness, then I think Congress should pass those programs and then we would implement it."
Alex Beene, financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "While we certainly expect some student loan forgiveness initiatives will be on the chopping block of the new administration, the decision to retain the Public Student Loan Forgiveness program shouldn't come as a big shock. This is a program that was in effect long before more recent efforts to curtail the difficulties borrowers are facing with student debt and has historically represented a way of encouraging public service in in-need, low income areas of the country through forgiveness of loans workers acquired while in school. If as we expect other means of student loan forgiveness do go away in the coming months, there may be renewed interest from some graduates in exploring public service options as a way of getting some or all of their debt covered."
What Happens Next
The Senate Health, Education, Labor and Pensions Committee plans to vote on McMahon's nomination before taking it to a floor vote, where Republicans hold a 53-47 edge.
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