PSLF Coalition’s Statement on Recent Executive Order
Last week, the White House issued an Executive Order directing the Secretary to propose revisions to the regulations governing the Public Service Loan Forgiveness (PSLF) program to bar public service professionals who work in certain non-profit organizations from PSLF. Congress recognized the importance of recruiting and retaining highly qualified public service professionals, including those who work in 501(c)(3) nonprofit organizations, when it passed the bipartisan PSLF program, and was signed into law by President George W. Bush in 2007. The PSLF Coalition plans to engage with the Administration to protect PSLF and ensure it recognizes that PSLF is a vital tool that strengthens our communities, fills critical workforce shortages, and ensures that public service remains an accessible and attainable career path.
Communities rely on public health, education, and safety services to contribute to a successful society. The public service professionals who perform these jobs, including those who work at 501(c)(3) nonprofit organizations, are essential in performing critical functions and services in every community. For example, communities in North Carolina and California continue to be devastated by natural disasters. Public service professionals are on the ground today ensuring residents get the food, healthcare, and any and all supports they need to survive. Efforts to restrict eligibility for PSLF for some workers would have a significant impact on the ability to recruit and retain highly qualified public service professionals to deliver these services, and likely would create a broader chilling effect as potential public servants lose trust that the program will be there for them in the future. In turn, efforts to restrict PSLF and who it benefits will have a negative impact on our ability to fully serve our communities in moments of crisis.
The PSLF Coalition strongly opposes actions to restrict eligibility or cut resources to PSLF given the strength, efficiency and importance of the program.
Further, the Department of Education recently announced a 50 percent reduction in its workforce, including hundreds of staff from the Office of Federal Student Aid. These actions raise serious concerns for the millions of people holding loans and thrusts borrowers into deeper uncertainty. The PSLF Coalition supports a well-functioning operation to preserve the effective implementation and integrity of PSLF.
PSLF is a contract – a deal that is made between public service workers to commit to 10 years (or more) in critical roles that benefit millions. This is a great deal for the American taxpayer. The public service worker – a prosecutor, veterinarian, educator or health care worker – commits to at least 10 years (or more) in the community and makes 120 on-time loan repayments, often repaying a significant amount of their loan balance, in exchange for filling a significant need in one of our nation’s communities.
“For public service workers– many of whom chose their career because of the existence of programs like PSLF – this is not a political issue, it’s a deeply personal one.” said the CEO of Equal Justice Works, Verna Williams. “PSLF is the only program specifically designed to ensure that those who dedicate their careers to keeping our communities healthy and secure – including first responders, law enforcement, prosecutors and public defenders, social workers, veterinarians and more – can do so with the understanding that their student loans will eventually be forgiven. Equal Justice Works is proud to work with a coalition of more than 100 organizations committed to protecting and strengthening PSLF, and we will continue working to ensure that public service remains an achievable path for those who choose it.”
“Any action that threatens the stability, continuity, and availability of the PSLF program to continue to successfully encourage talented individuals to pursue and remain in public service careers, including essential non-profit organizations, will be a disservice to our country,” said Christopher P. Chapman, President and CEO of AccessLex Institute. “Dismantling both the operational and policy expertise within the Department of Education, as well as its oversight function would create unnecessary inefficiencies for the government and reduced achievement of the program’s objectives.”
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