Student Loan Freedom

Terry Savage, Tribune Content Agency on

The issue of student loans is bubbling away on the back burners of Congress. Forbearance authorized by the CARES Act is scheduled to end on September 30, at which point borrowers will have to start making regular payments again. Since the start of forbearance, nearly 42% of borrowers have not made any monthly payments.

Many are hoping that the president will announce some sort of student loan forgiveness program at the same time as payments resume. Biden's "American Rescue Plan" promised up to $10,000 of forgiveness, and he likely does have the authority to authorize some forgiveness without the vote of a divided Congress.

If loans are not forgiven, many borrowers are likely to resort to one of the income-based repayment plans available to lower those monthly payments. But that will drag out their payment schedule well into retirement! And at that point if they can’t pay, their Social Security benefits will be reduced!

A Better Solution

Millions of Americans are eligible to take advantage of the Public Service Loan Forgiveness (PSLF) program. It is designed to forgive the entire balance of most federal student loan if eligible workers make 120 on-time payments — even at reduced levels offered by one of the four income-adjusted federal programs.

The PSLF program is available to teachers, nurses, doctors, government employees like police and firefighters, tribal employees, and employees of non-profit 501(c)3 charities. If you work in any job at a qualifying employer — for example, whether nursing or administrator at a nonprofit hospital — you are eligible. All Federal Direct loans qualify for forgiveness, but not FFEL or Perkins loans.


The PSLF program was launched in 2007 with much fanfare. But since the initial 10-year period ended in 2017, only around 3,700 borrowers have had their loans forgiven. The program required such specific conditions and employer certifications that many borrowers who worked hard to make all those payments over 10 years were devastated to be told they hadn’t met the requirements!

A New Employee Benefit from enables employers to offer a full suite of education assistance benefits such as direct contributions to employee student loans, student loan management tools, and tuition assistance.

Now they’ve launched interactive PSLF tools online for qualifying employers (all those public service employers noted above) to make available to their workers. There is no cost to the employee.


swipe to next page



Pearls Before Swine Bart van Leeuwen Brian Duffy Gary Markstein Dogs of C-Kennel Jeff Danziger