No Loan Forgiveness for Terrorists Act of 2025
- Bill Number
- S. 1845
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Education
- Status
- Introduced
- Latest Action
- 2025-05-21: Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
- Last Updated
- 2025-12-05T22:54:45Z
AI-Generated Summary
Purpose of the Legislation
This bill, titled the "No Loan Forgiveness for Terrorists Act of 2025," aims to modify the Public Service Loan Forgiveness (PSLF) program under the Higher Education Act of 1965. The PSLF program forgives federal student loans for borrowers who make qualifying payments while working full-time in eligible public service jobs. The legislation seeks to exclude certain organizations from qualifying as public service employers if they engage in activities deemed to have a substantial illegal purpose, preventing loan forgiveness for employees of such groups.
Key Provisions
- Amendment to PSLF Definition: Adds a new subparagraph (C) to Section 455(m)(3) of the Higher Education Act, which defines "public service job."
- Exclusion Criteria: Qualifying public service jobs will not include employment with any organization that engages in activities with a substantial illegal purpose, specifically including:
- Aiding or abetting violations of federal immigration laws, such as illegal entry under Section 275 of the Immigration and Nationality Act.
- Materially supporting terrorism, such as facilitating funding or operations for cartels designated as Foreign Terrorist Organizations (FTOs) under Section 219 of the Immigration and Nationality Act, or using violence to obstruct or influence federal policy.
- Materially supporting child abuse, including chemical or surgical procedures on children (described as castration or mutilation) or trafficking children to states with policies allowing emancipation from parents for transgender-related purposes, in violation of applicable laws.
- Engaging in a pattern of aiding or abetting illegal discrimination.
- Engaging in a pattern of violating state tort laws (civil wrongs), such as those prohibiting trespassing, disorderly conduct, public nuisance, vandalism, or blocking highways.
- Scope: The exclusion applies notwithstanding other definitions of public service jobs, ensuring these activities disqualify the employer regardless of other qualifications.
Significant Changes to Existing Law
- Prior to this amendment, the PSLF program's definition of public service jobs (under subparagraph (B)) broadly included full-time employment with government organizations, non-profits, or certain for-profits serving public interests, without specific exclusions for illegal activities beyond general employment standards.
- This bill introduces targeted exclusions based on organizational activities, narrowing eligibility by adding a new subparagraph (C). It shifts the focus from the employee's role to the organization's broader conduct, potentially disqualifying entire employers if they meet the criteria.
Potential Impacts
- On Government Agencies: The U.S. Department of Education, which administers PSLF, would need to update certification processes, verify employer eligibility, and handle potential appeals or audits, increasing administrative workload and costs.
- On Citizens: Student loan borrowers working for affected organizations could lose eligibility for loan forgiveness after 10 years of qualifying payments, leading to continued debt repayment. This may discourage employment in certain non-profits or advocacy groups, affecting career choices in public service sectors like immigration aid, civil rights, or social services.
- On International Relations: Provisions related to terrorism support (e.g., FTO designations) could align U.S. domestic policy with anti-terrorism efforts, potentially influencing how international aid or border organizations operate, though direct impacts on foreign relations appear limited.
Main Stakeholders Affected
- Student Loan Borrowers: Primarily those pursuing PSLF, especially in non-profit or advocacy roles related to immigration, civil rights, child welfare, or protest activities.
- Organizations and Employers: Non-profits, advocacy groups, and public interest entities involved in immigration services, anti-discrimination efforts, transgender rights support, or activism, which risk losing PSLF eligibility for their employees.
- Government Entities: The Department of Education for implementation; immigration and justice agencies (e.g., DHS, DOJ) for defining violations; and Congress for oversight.
- Broader Public: Communities relying on affected organizations for services, such as immigrants, children in welfare systems, or marginalized groups.
Notable Legal, Constitutional, or Political Implications
- Legal Implications: The bill's broad terms like "substantial illegal purpose," "materially supporting," or "pattern of aiding" could invite challenges for vagueness, requiring courts to clarify what constitutes exclusionary activities. Enforcement might involve fact-finding on organizational conduct, potentially leading to litigation over evidence standards.
- Constitutional Implications: Provisions touching on discrimination, child procedures, or protest-related activities (e.g., violence or obstruction) may raise First Amendment concerns if they limit speech, association, or advocacy rights. Immigration and terrorism clauses could intersect with due process under the Fifth Amendment.
- Political Implications: The legislation highlights partisan divides on issues like immigration enforcement, terrorism designations, child protection, and transgender policies, potentially fueling debates over federal funding for social programs. It could set precedents for conditioning public benefits on employer behavior, influencing future education or welfare reforms.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (2)
Sen. Tuberville, Tommy [R-AL], Sen. Moreno, Bernie [R-OH]
Recent Actions
- 2025-05-21: Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
- 2025-05-21: Introduced in Senate
Bill Versions
- No Loan Forgiveness for Terrorists Act of 2025 — issued 2025-05-21 — PDF (3 pages)