By: Paul Goldberg, Senior Editor | JRL CHARTS – LGBT Politics USA
WASHINGTON D.C. — (July 28, 2025) — In yet another aggressive attack on LGBTQ+ rights, President Donald Trump’s administration is moving to strip student loan forgiveness from thousands of LGBTQ+ workers employed in nonprofit organizations.
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According to newly leaked draft guidance from the Department of Education, workers at nonprofits that provide gender-affirming care, support transgender youth, or engage in diversity and inclusion efforts may be disqualified from the Public Service Loan Forgiveness (PSLF) program. The move stems from Trump’s executive order signed in March, which falsely claims that LGBTQ+ advocacy and gender-affirming healthcare contribute to “illegal activities.”
“This could potentially disqualify anyone working for an organization involved in gender-affirming care, or possibly those serving transgender individuals more broadly,” warned Brad Sears, Distinguished Senior Scholar of Law and Policy at the Williams Institute.
The proposed rule could impact tens of thousands of LGBTQ+ workers across legal aid clinics, healthcare providers, civil rights organizations, and public education — especially those defying Trump’s anti-trans directives.
What Is PSLF and Why It Matters
The Public Service Loan Forgiveness program was created in 2007 under President George W. Bush to help government and nonprofit workers erase their federal student loan debt after 10 years of service. While plagued by bureaucratic delays and high rejection rates, PSLF has been a lifeline for public servants in low-paying but high-impact roles.
Trump’s order redefines PSLF eligibility to exclude workers whose employers supposedly “subsidize illegal activity” — a catch-all phrase that now includes organizations providing or defending gender-affirming medical care. It also targets nonprofits engaged in LGBTQ+ youth services, diversity programs, and legal protections for trans people.
Trump’s Executive Order: A Direct Attack on LGBTQ+ Service Workers
Trump’s March order directs Education Secretary Linda McMahon to deny PSLF eligibility to employers accused of:
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Providing gender-affirming care, which the order labels as “child abuse”
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“Trafficking minors” to trans sanctuary states
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Promoting diversity, equity, and inclusion (DEI) initiatives
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Engaging in activities that “disrupt public order”
Though not yet enforced, the order empowers the Education Department to issue disqualification notices to nonprofit employers, with final eligibility determined by a court. Borrowers working at flagged organizations will see their PSLF credits cut off after July 1, 2026.
Who’s at Risk?
If the order is implemented as drafted, PSLF disqualifications could extend to:
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LGBTQ+ civil rights nonprofits like Lambda Legal and the ACLU
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Healthcare providers offering hormone therapy and affirming care
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Teachers and school counselors refusing to comply with anti-trans mandates
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Social workers assisting queer youth and families
The vague language of the policy creates sweeping authority to strip forgiveness from any nonprofit that defies the administration’s anti-LGBTQ+ ideology.
LGBTQ+ Student Debt Crisis
According to a 2025 joint study by the Williams Institute and the Point Foundation, over 2.9 million LGBTQ+ adults held more than $93.2 billion in federal student loans at the start of the Biden administration.
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51% of transgender adults carry federal student loan debt
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36% of cisgender LBQ women
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28% of cisgender GBQ men
President Biden’s administration provided $183 billion in debt relief to over five million borrowers. Roughly 336,000 LGBTQ+ adults are believed to have benefited. Trump’s order could reverse that progress — and disproportionately harm queer workers who chose nonprofit careers for the public good.
Medical Experts Refute Trump’s Claims
The president’s order falsely describes gender-affirming care as abusive or illegal. However, every major medical body — including the American Medical Association, American Psychiatric Association, American Academy of Pediatrics, and World Health Organization — agrees that gender-affirming healthcare is evidence-based, ethical, and medically necessary.
By redefining such care as “illegal,” the Trump administration is now using student debt as a weapon — punishing LGBTQ+ workers and organizations under the guise of public policy.
What Happens Next?
Trump’s Department of Education has not yet finalized the new PSLF rules. However, legal experts warn that the executive order could be enforced through regulatory action, court rulings, or state-level cooperation from Republican-aligned legislatures.
LGBTQ+ advocacy groups are expected to challenge the policy in federal court. Meanwhile, queer nonprofit workers face mounting uncertainty over whether their years of public service will count — or be erased by political targeting.
Footnotes
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Executive Order on PSLF Eligibility, March 2025 – White House Office of the President
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Williams Institute & Point Foundation, LGBTQ Student Loan Debt Report – March 2025
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AMA, APA, AAP Joint Statements on Gender-Affirming Care – 2023 to 2025
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U.S. Department of Education PSLF Approval Statistics – 2020 & 2024
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For the latest developments on Trump’s PSLF crackdown, trans rights policy, and LGBTQ+ advocacy in the 2026 election cycle, stay with JRL CHARTS – LGBT Politics USA.
