Administration Modifies Public Service Loan Forgiveness
The U.S. Department of Education has announced new rules giving it authority to remove certain public service and nonprofit employers from the Public Service Loan Forgiveness (PSLF) program if their activities are found to have a “substantial illegal purpose.”
Organizations could be disqualified for actions such as aiding undocumented immigration, supporting terrorism, child trafficking, or providing gender-affirming care to minors in states where it is restricted, based on court rulings, legal settlements, or the education secretary’s determination. Although fewer than 10 employers per year are expected to be affected, the change could significantly impact employees counting on PSLF to manage student debt.
HR professionals should review their organization’s PSLF eligibility, communicate potential risks to employees, and consider how the rule may affect recruitment and retention strategies tied to loan forgiveness benefits. SHRM will continue to track these developments and provide guidance to help HR leaders stay informed, compliant, and equipped to support employees participating in PSLF.
Was this resource helpful?
Validate your HR expertise
Earning your SHRM-CP credential makes you a recognized expert and leader in the HR field.
Related Content
Learn how Marsh McLennan successfully boosts staff well-being with digital tools, improving productivity and work satisfaction for more than 20,000 employees.
The proliferation of artificial intelligence in the workplace, and the ensuing expected increase in productivity and efficiency, could help usher in the four-day workweek, some experts predict.
As artificial intelligence technology continues to develop, the demand for workers with the ability to work alongside and manage AI systems will increase. This means that workers who are not able to adapt and learn these new skills will be left behind in the job market.