Republican Indiana Sen. Jim Banks unveiled a bill Wednesday that would prevent people from receiving student loan relief from the Public Service Loan Forgiveness (PSLF) program if they work for organizations that support terrorism and illegal activities.
The legislation, known as the “No Loan Forgiveness for Terrorists Act of 2025,” would require the PSLF program to exclude employment with groups that engage in activities that have “a substantial illegal purpose,” according to a copy of the bill text first obtained by the Daily Caller News Foundation. Banks’ bill would codify an executive order unveiled by President Donald Trump in March that aims to deny PSLF eligibility to students working for organizations that threaten U.S. national security and “harm” American values.
“Taxpayers shouldn’t be forced to pay student loans for radicals who aid terrorists, mutilate children, or promote illegal immigration,” Banks said in a statement provided exclusively to the DCNF. “This bill codifies President Trump’s order to stop subsidizing anti-American extremism.”
PSLF is a program established in 2007 that offers eligible students federal student loan forgiveness after making the equivalent of 120 qualifying monthly payments while working full-time for a qualifying employer in the public service sector.
Banks‘ legislation would also require the PSLF program to exclude students from receiving loan forgiveness if they are employed by groups that aid or abet violations of federal immigration laws, materially support terrorism, materially support child sex changes, aid and abet illegal discrimination or violate state laws against trespassing and disorderly conduct, according to the bill’s text.
President Joe Biden notably led a massive push to forgive billions in student loan debt during his sole term. The White House claimed in a March fact sheet that Trump’s public service loan forgiveness executive order would prevent taxpayer dollars from funding “radical agendas,” and also claimed that the Biden administration used the PSLF program to “pay pro-Palestinian and pro-Hamas activists and criminals with taxpayer dollars.”
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