U.S. Representative Greg Steube (R-Fla.) today introduced the “No Loan Forgiveness for Terrorists Act,” a bill aimed at codifying President Donald Trump’s executive order that bars employees of organizations engaged in illegal activities from benefiting from the Public Service Loan Forgiveness (PSLF) program.
The legislation seeks to prevent taxpayer-funded student loan forgiveness for individuals working with groups that undermine U.S. national security or federal law.
“If someone accepts a job with an organization that is actively undermining U.S. national security and federal law, they shouldn’t expect a thank you note and taxpayer-funded prize for their work,” stated Rep. Steube.
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He says that President Trump’s executive order was the correct policy to prevent the subsidization of illegal activities, asserting that loan forgiveness should be reserved for law enforcement and deserving public servants.
The bill, introduced in the House of Representatives, is a companion to legislation introduced last month in the U.S. Senate by Senator Jim Banks (R-Ind.). Senator Banks echoed Steube’s sentiments, stating, “Taxpayers shouldn’t be forced to pay student loans for radicals who aid terrorists, mutilate children, or promote illegal immigration. This bill codifies President Trump’s order to stop subsidizing anti-American extremism.”
The proposed legislation would amend the Higher Education Act to refine the definition of a “public sector job” under the PSLF program. Specifically, it would disqualify time spent with entities found to be in violation of federal immigration and tort laws, supporting terrorist activities or child abuse, or engaging in a pattern of discrimination. These changes directly reflect President Trump’s March 7, 2025, executive order on “Restoring Public Service Loan Forgiveness.”
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The “No Loan Forgiveness for Terrorists Act of 2025” outlines several specific exclusions from qualifying public service.
These include employment with any organization that has a “substantial illegal purpose,” such as aiding or abetting violations of federal immigration law, materially supporting terrorism (including facilitating funding to cartels designated as Foreign Terrorist Organizations), materially supporting child abuse (including practices like “chemical or surgical castration or mutilation of children” or child trafficking for purposes of emancipation from lawful parents), engaging in a pattern of illegal discrimination, or consistently violating state tort laws like those against trespassing, disorderly conduct, or vandalism.
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