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Free-Market Voice Joins Federal Rulemaking Panel on Student Loan Forgiveness

The U.S. Department of Education named Thomas Aiello, Senior Director of Government Affairs at National Taxpayers Union (NTU) to serve as a non-federal negotiator representing the taxpayer and public interest constituency on its newly convened rulemaking committee focused on the Public Service Loan Forgiveness (PSLF) program.

The 10-person panel was established to create a set of regulations intended to implement President Donald Trump’s March Executive Order on the PSLF. After three days of negotiations, the panel was unable to reach consensus on the proposed rule, allowing the Department to author its own rule that may include some of the provisions proposed by the negotiating committee.

Aiello is the first representative from the taxpayer community to serve on this committee, marking a significant step toward ensuring taxpayer voices are part of the regulatory process.

“It was a privilege to be selected by the Department of Education as a primary negotiator representing the taxpayer and public interest community, and I commend Secretary McMahon for giving taxpayers a seat at the table.” Aiello said. “From the start of negotiations, my guiding principle was to narrow the eligibility requirements of the unfair loan forgiveness program to better protect taxpayer dollars in a fair and reasonable manner. I look forward to participating in future negotiations that will continue to broadly refine a program that is ballooning costs to the federal government, and, ultimately, all taxpayers regardless if they earned a college degree.

Aiello’s appointment came as the Department engaged in negotiated rulemaking, bringing together stakeholders to shape future regulations through consensus. 

The PSLF program has faced scrutiny in recent years for lack of clarity, shifting eligibility criteria, and attempts by some policymakers to stretch its purpose beyond its original scope. Today, this program costs federal taxpayers about $15 billion annually and is expected to grow in the years ahead without changes from Congress or the administration.

As a representative of pro-taxpayer, limited government principles, Aiello advocated for: 

  • Tighter eligibility criteria that restore the program’s original intent to reward sustained public service, not provide blanket loan forgiveness to broad populations.

  • Structural safeguards that protect legal activities by eligible organizations to ensure future administrations cannot weaponize the process.

  • Neutral, durable regulations that apply evenly, regardless of political affiliation or professional sector.