- A new report from the National Association of Student Financial Aid Administrators recommends that the Public Service Loan Forgiveness program be continued, along with some changes.
- Recommendations developed by a task force include making data about the program public, increasing public awareness, and keeping the current criteria for eligibility in place.
- The task force also recommends putting limits on the amount of loan forgiveness.
The Public Service Loan Forgiveness Program currently allows employees of federal, state, or local government agencies, as well as certain tax-exempt non-profit organizations, to have federal Direct Loans forgiven after 10 years. With student loan debt currently exceeding $1 trillion and reportedly impacting economic recovery, that debt forgiveness is a big deal for graduates taking those jobs.
Still, it's not hard to imagine the program's costs becoming unsustainable, as well, hence the limits. The recommendation on that front would allow 100% forgiveness on loans at or below the current undergraduate aggregate Stafford Loan limit or $57,500, with an additional 50% forgiveness of remaining loan balance up to the graduate aggregate Stafford Loan limit of $138,500. To further make sure costs are controlled, the organization recommends requiring annual employment certification submissions.