As President Donald Trump moves to curtail student loan forgiveness for many public service workers, his administration has unveiled a surprising benefit: student loan relief and a $50,000 signing bonus for new ICE agents.
The Department of Homeland Security announced the new incentive program Tuesday, offering loan repayment assistance to Immigration and Customs Enforcement (ICE) recruits. This move starkly contrasts with Trump’s push to limit the Public Service Loan Forgiveness (PSLF) program, which since 2007 has benefited government and nonprofit workers.
In July, the Department of Education advanced a proposal to exclude certain groups from PSLF eligibility, citing an executive order aimed at stopping taxpayer funding of organizations the administration considers harmful to national security or American values. This includes nonprofits serving transgender youth or aiding undocumented immigrants.
Experts argue the administration is using financial aid as a political tool. “This shows the Trump administration’s willingness to weaponize debt forgiveness to further fascist goals,” said Persis Yu of the Student Borrower Protection Center.
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Meanwhile, Trump’s legislative actions have targeted broader debt relief. The SAVE Plan, a Biden-era income-driven repayment option, was struck down in July, and interest resumed for nearly 8 million borrowers. New restrictions also limit graduate and parental federal loans, pushing families toward costlier private debt.
Critics call the ICE benefit a double standard. “It’s hypocritical to relieve debt for ICE agents while denying forgiveness to average Americans,” said Sara Partridge of the Center for American Progress.
Government agencies can use the Federal Student Loan Repayment Program to offer loan assistance up to $60,000 per employee, a tactic now being employed to recruit ICE personnel. But Wil Del Pilar of EdTrust notes the timing and selectivity are politically charged: “The administration is fast-tracking relief for allies while blocking it for critics.”
The proposed changes to PSLF could face legal battles. Advocates argue the vague language about “substantial illegal purposes” could exclude even more borrowers, including protesters and legal advocates.
Historically, student debt has been used as a form of control. As Yu explains, “Debt keeps people in place and obedient. It’s now being used to punish dissent and reward compliance.”
