Are you looking for another way to attract, retain, and engage employees? Remind your employees about the Public Service Loan Forgiveness (PSLF) program, as well as a special waiver only in effect until October 31, 2022 that may credit borrowers for payments that didn’t qualify in the past.
According to a press release issued by the U.S. Department of Education on August 23, “It has approved more than $10 billion in debt relief for over 175,000 borrowers in 10 months through the Public Service Loan Forgiveness (PSLF) program. This follows changes the Department announced in October 2021 that transformed the program by changing certain rules to make it easier for public servants with federal student loans to have their debts canceled.”
About the Program
The Federal Student Aid website explains, “The PSLF Program forgives the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer.” This will likely be a welcome reminder for eligible employees who are looking at resuming student loan payments starting January 1, 2023.
In general, if you are a U.S. federal, state, local or tribal government organization, your employees may be eligible. (Employees of certain non-profit organizations may also be eligible.) Eligible interested employees can use the PSLF Help Tool to certify employment each year; apply for forgiveness after meeting all requirements; and generate the required form for submission. Complete details are available on the Federal Student Aid website and on the FedLoan Servicing website.
About the Limited Time Special Waiver: Deadline October 31, 2022
The PSLF waiver provides a limited-time opportunity for expanded loan forgiveness. Past payments may now be considered for PSLF, even if they wouldn’t normally qualify. With the waiver, employees may increase total number of qualifying payments; include periods of employment not previously counted due to loan type or repayment history, and seek forgiveness on older loans by consolidating them into Direct Loans. Full details are available here.
Promoting the Program & Waiver
If your employees haven’t heard about this special perk of being a public service employee since their initial onboarding or orientation or just never took advantage of PSLF, now is the perfect time to remind them – especially given the tight labor market and competition for talent (not to mention the October 31 special waiver deadline). Consider sending a reminder email, doing a desk-drop, or holding a lunch and learn to review key details, answer questions, and encourage employees to take advantage of this valuable perk. The Department of Education developed a toolkit containing sample promotional language and pieces.
While focusing on promoting this perk, if you should need any accounting, tax, or auditing assistance, RBT CPAs is available to help. We’re a leading accounting firm in the Hudson Valley and beyond, with extensive experience serving government organizations and municipalities. Visit our website or give us a call today.