What is Public Service Loan Forgiveness? 

Public Service Loan Forgiveness is a government program for student loan borrowers who work in the public service sector. It was part of the bipartisan College Cost Reduction and Access Act passed in 2007, which sought to combat rising college costs and lower barriers to lower-income students’ access to higher ed. In addition to increasing federal funding for Pell Grants, it created PSLF, which promised loan forgiveness to those who went to school and then gave back to their communities by working in industries like local, federal, or tribal governments; non-profits; and other groups that serve the public good. 

Why Public Service Forgiveness?

Public Service Loan Forgiveness provides a path to higher education regardless of a borrower’s financial background. That means that, even if you grew up without a lot of money, you can still aspire to be a doctor, a teacher, and more. Many public service jobs require extensive education: professions in the medicine, education, and government sectors often require graduate or professional degrees that can cost tens or hundreds of thousands of dollars. Without the benefit of federal student loans, these careers would be prohibitively expensive to most Americans. The exploding cost of college, however, means that these borrowers are then yoked with debts that they—or their parents—expect to be paying off until they die. PSLF, however, prevents payments from becoming unaffordable, while limiting the repayment window to a reasonable 10 years.

What’s Going to Happen to PSLF?

PSLF has had a rocky history, and it’s not over yet. Loan forgiveness is a controversial subject these days, and has been grossly misrepresented among certain groups in the media. Lawmakers, too, have taken aim at PSLF in budget talks over the years, but it’s always survived unscathed. While these efforts—or, at least, threats—to eliminate student loan forgiveness create a lot of fear and anxiety for the millions of borrowers relying on the program, it’s unlikely that it’s going anywhere. Since PSLF was created by Congress, it’s the law of the land and would essentially require congressional intervention to eliminate it. Such an effort would assuredly create a massive headache for the federal government, including innumerable opportunities for lawsuits. 

What Should I Do Now?

Whenever there are changes to repayment, especially to big issues like PSLF, we get lots of calls from worried borrowers asking, “What do I do?” The short answer right now is: stay calm. These upheavals also provide opportunities for scammers. There are a few things you can do to help yourself get prepared, but there isn’t anything you need to do. At the moment, PSLF isn’t going anywhere and we believe that it’s not going anywhere. Navigate and our friends are always on top of evolving federal student loan policies and are constantly advocating for protections for borrowers and PSLF. Don’t make any changes right now to your repayment strategy; making changes under the pressure of anxiety can lead to costly mistakes. 

If you’re worried about what’s coming down the pike for PSLF, give us a call. We can give you the most up-to-date information and help you be prepared for any potential changes. For now, take a deep breath and let your student loan professionals take the wheel.