Education Nominee McMahon Vows to Continue Loan Forgiveness Program
In her confirmation hearing, Secretary of Education nominee Linda McMahon affirmed her commitment to maintaining the Public Service Loan Forgiveness (PSLF) program, despite potential opposition within the Trump administration. Emphasizing existing legislation, McMahon stated, "We should honor those programs" that provide loan forgiveness for public service.
The PSLF program, which eliminates debt for government and nonprofit employees after 10 years of on-time payments, has faced criticism from Republicans who view it as costly and unfair. During the Trump administration, Secretary of Education Betsy DeVos sought to eliminate the program and allegedly delayed its implementation, resulting in a high rejection rate for forgiveness applications.
However, under the Biden administration, the Department of Education has prioritized expanding PSLF. Since 2021, over 1 million borrowers have received debt forgiveness through the program. Emphasizing the law's precedence, McMahon affirmed her commitment to upholding PSLF operations, even if instructed otherwise by the Biden administration.
The Biden administration has streamlined the PSLF program through emergency powers, allowing students to count past payments and broadening the definition of on-time payments. It has also simplified the application process. Reversing these changes would be complex and time-consuming.
Student advocates remain concerned about potential attempts to slow down the program, given the Trump administration's appointment of former lobbyists for debt servicers and for-profit colleges to high positions. However, McMahon's commitment to maintaining PSLF provides reassurance for borrowers seeking debt forgiveness opportunities.