CalNonprofits Articles

Debt Logo Transparent 200The proposed Higher Education Act reauthorization bill could limit the ability of current and future public service professionals - including nonprofit staff - to contribute to our communities. Among other things, it eliminates Public Service Loan Forgiveness (PSLF), a vital program that an estimated 160,000 Californians who serve their communities as social workers, teachers, firefighters, veterinarians, environmental advocates, musicians, and more could benefit from.

Call your representative now to let them know that PSLF program is a vital part of recruiting and retaining talented nonprofit staff. You can find your legislator and see talking points here.

Bill would eliminate program that people are counting on.
PSLF was signed into law by President George W. Bush in 2007. By allowing borrowers who work in nonprofit jobs to earn forgiveness on eligible federal loans after making ten years’ worth of on-time monthly loan payments, PSLF encourages individuals to pursue careers in public service. PSLF is especially important for rural communities, which have a harder time recruiting talented college graduates to fill critical public service jobs.

Only now are borrowers who have worked in public sector jobs for 10 years and made consistent payments on their student loans becoming eligible for forgiveness. Eliminating the program prematurely without having meaningful data on the number of borrowers that actually receive forgiveness and accurate assessments of its fiscal and social impact is bad policy.

To learn more about how to enroll in the Public Service Loan Forgiveness Program or how nonprofits can support staff with student debt, check out our Nonprofit Student Debt Project.

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