The revised Public Service Loan Forgiveness program clarifies what the administration defines as “illegal activities” and which employers will be excluded from federal student loan forgiveness, in order to ensure “taxpayer dollars are not misused” by “organizations that have a substantial illegal purpose.”
Under the new rules, the secretary of education is granted authority to block employers, not specific individuals, who participate in activities the administration determines have “a substantial illegal purpose.”
The Department of Education argues that previous oversight of forgiveness employer eligibility was insufficient, allowing some organizations involved in illegal activities to benefit.
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