ABA Journal, Fewer Will Qualify for Student Loan Forgiveness Under Proposed New Guidelines; Will Sanctuary Jurisdictions be Disqualified?:
Proposed changes to the Public Service Loan Forgiveness program published Monday would revoke eligibility for borrowers working for nonprofit and government organizations deemed to have a “substantial illegal purpose,” a term with a broad definition.
The program offers loan forgiveness for those who make monthly payments on direct federal student loans for 10 years while working full time in qualified public service jobs. Among those participating in the program are lawyers working as prosecutors, public defenders and advocates for low-income communities.
Critics allege that the changes could kick some employers out of the program if their mission conflicts with the Trump administration’s agenda, Forbes reports. A provision that cuts out employers that aid violations of federal immigration laws, for example, could be used to disqualify work for state and local governments that don’t cooperate in immigration enforcement, Forbes says, citing a blog post by the Institute for College Access & Success.
Forbes, Department Of Education Publishes New Rules Restricting Student Loan Forgiveness For PSLF:
The Trump administration on Friday released for public inspection new regulations designed to limit student loan forgiveness under the Public Service Loan Forgiveness program. The publication does not mean the rules are in effect yet. But it does move the process to restrict PSLF one step closer to reality, with major implications for millions of federal student loan borrowers.
PSLF is a popular program, first enacted under President George W. Bush in 2007, to encourage borrowers to take traditionally lower-paying jobs at government and nonprofit organizations. These types of roles typically require advanced degrees (such as law degrees for attorneys working as prosecutors or public defenders, or nursing degrees for nurses working in community health) but often pay much less than comparable private sector jobs. For example, the average starting salary for a prosecuting attorney is around $57,000 per year. But the average starting salary for a first-year associate at a major law firm is more than $200,000.
PSLF offers student loan forgiveness to borrowers who make qualifying payments on their federal student debt while working in eligible public service employment for at least 10 years.
- Chronicle of Higher Education, Loan Forgiveness Gets Political, Again
- Forbes, Department Of Education Publishes New Rules Restricting Student Loan Forgiveness For PSLF
- Inside Higher Ed, New PSLF Rule Could Limit Debt Relief Access for Thousands
- Money, 5 Things to Know About the Trump Administration’s Plans to Limit PSLF
- Newsweek, Student Loan Update: Lawmakers Issue Warning Over Change Impacting Millions
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