04/19/2017

Loan Forgiveness Uncertainty Worries Many

Some are facing uncertainty over whether DOE will continue to recognize their student loan forgiveness eligibility

Some nonprofit employees are facing uncertainty over whether the Department of Education will continue to recognize their eligibility in a loan forgiveness program. It also raises issues for HR departments that have had employees participate in the program.

Concern is growing that the Department of Education (DOE) may retroactively refuse to honor loan forgiveness as part of the Public Service Loan Forgiveness program to participants who are employed by certain nonprofits.

The PSLF program, enacted in 2007, states that individuals who work in a public service job and make timely payments on their student loans for 10 years would have their debt forgiven. The American Bar Association filed a lawsuit last December after DOE informed several ABA lawyers and other nonprofit employees that they were no longer eligible for loan forgiveness through the program.

Please click here to read the complete article from Associations Now.