Why Doctors, Nurses & Teachers Could Be Left Behind
New legislation could block PSLF for key public service workers. See what’s changing—and how fast.
4 Groups Who Could Lose Student Loan Forgiveness Under GOP Proposals
Federal student loan forgiveness is facing its biggest threat in years. A wave of proposed changes from House Republicans, the Department of Education, and the Trump administration could eliminate or dramatically scale back forgiveness options for millions of borrowers.
Advocates are sounding the alarm: If these changes become law, borrowers could see higher monthly payments, longer repayment terms, and fewer paths to financial freedom.
Here’s what you need to know about the four groups of borrowers most at risk under the GOP proposals.
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1. Borrowers in SAVE, PAYE, and ICR Plans Could Lose Forgiveness
House Republicans have introduced legislation that would completely repeal the SAVE, PAYE, and ICR income-driven repayment (IDR) plans. These plans have been critical for borrowers who rely on lower monthly payments based on income and eventual loan forgiveness after 20 or 25 years.
What’s at stake:
Forgiveness under SAVE, PAYE, and ICR is already paused due to a federal court ruling.
The new bill would permanently eliminate these plans, even for current borrowers.
Borrowers would be moved into the older IBR plan, which has a 25-year repayment term and often results in higher monthly payments.
Alternatively, borrowers could opt into a new GOP-proposed IDR plan, but forgiveness wouldn’t occur until after 30 years of repayment.
The Department of Education is also pursuing regulatory changes that could further restrict PAYE and ICR, amplifying the impact even if the bill stalls.
2. Parent PLUS Borrowers Could Be Shut Out Entirely
Currently, Parent PLUS borrowers can access student loan forgiveness by consolidating their loans and enrolling in the ICR plan. But under the GOP bill, ICR would be repealed, effectively cutting off access to forgiveness for new Parent PLUS borrowers.
What this means:
No access to income-driven repayment or PSLF for most Parent PLUS borrowers.
Borrowers already in ICR and in good standing would be moved to IBR, preserving a forgiveness pathway.
New borrowers would be left with no forgiveness options under the current proposal.
Parent PLUS loans already come with higher interest rates and fewer protections, making this group particularly vulnerable.
3. Medical and Dental Residents Could Be Excluded from PSLF
In a move that shocked many in the healthcare community, the GOP legislation proposes to deny PSLF credit to medical and dental residents and interns, even if they work full-time at qualifying nonprofit hospitals.
Why this matters:
These early-career professionals often earn modest stipends while working long hours.
Excluding them from PSLF would prolong debt burdens and increase the risk of burnout in vital healthcare roles.
The change would break from decades of PSLF precedent that included these professionals.
4. Employees of Certain Nonprofits Could Lose PSLF Eligibility
President Trump’s recent executive order would restrict PSLF access based on the mission and activities of the borrower’s employer. Organizations involved in immigration work, gender-affirming care, DEI initiatives, or anything labeled as a "public nuisance" could be disqualified.
The broader implications:
The language is intentionally vague, which could give the administration wide latitude to block PSLF for politically disfavored causes.
Critics argue the move violates free speech and contradicts the intent of Congress when PSLF was created.
The Department of Education has launched a rulemaking process to implement these changes, which could take effect within a year.
Additional proposals would revoke the tax-exempt status of institutions like Harvard, which could further disrupt PSLF eligibility.
The Bigger Picture: A Coordinated Push to Gut Loan Forgiveness
These changes are not isolated. They reflect a coordinated effort from lawmakers and executive agencies to radically shrink the scope of federal student loan forgiveness. Advocacy groups warn that it would:
Shift more cost onto low- and middle-income borrowers
Undermine careers in public service
Keep millions in debt longer with fewer off-ramps
Persis Yu of the Student Borrower Protection Center said it best:
“The Trump Administration’s assault on IDR and PSLF isn’t reform—it’s retaliation. These actions would force nurses, teachers, veterans, and others who have dedicated their careers to serve our communities, to choose between paying their monthly student loan bills and putting food on their tables.”
How to Protect Yourself Now
While the proposed changes aren’t law yet, they highlight the urgency for borrowers to take action now:
Certify employment for PSLF annually
Download your IDR payment count from StudentAid.gov
Avoid consolidating loans until rules are clear
Consider speaking with a student loan advisor to explore backup plans
Stay connected with K2DF Insiders for $9.99/month to receive the latest student loan updates, action guides, and strategies to protect your progress toward forgiveness.
Borrowers Deserve Better — Not Broken Promises
These proposed rollbacks risk penalizing the very people who followed the rules: borrowers who served their communities, repaid for years, and relied on federal promises of relief. We’ll continue to monitor every update and help you navigate the changes. For now, staying informed is your best defense.