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.”