AACTE Hosts Policy Briefing to Help Educators Manage Student Loans
AACTE is hosting its second Public Policy in Action webinar, “How Educators Can Better Manage their Federal Student Loans,” on May 19 at 1:00 p.m. (EDT). These public policy events are designed to help members understand critical policy updates originating from Congress or the Biden Administration. May’s webinar is focused on two critical items related to the educator workforce: the potential restart of payments on Federal student loans and the Public Service Loan Forgiveness (PSLF) program. We hope that attendees will also share policy developments related to student financial aid in their states.
When COVID-19 first began to impact our nation and the world, Congress passed the Coronavirus Aid, Relief, and Economic Security Act or, CARES Act. The legislation authorized a “pause” on all Federal loan repayment plans, interest accumulation and suspended garnishment efforts. This pause was renewed several times, the latest is through August 31, 2022. While there is a chance that President Biden will extend the pause, AACTE believes that Federal student loan borrowers need to begin planning for the resumption of payments on their loans.
The Public Service Loan Forgiveness (PSLF) program was created in 2007 to attract well-educated individuals with careers in the public sector, including teachers, counselors, and other educators. In part, it was meant to help address the pay disparity in careers in the public and private sector for similarly educated individuals. It can also be used as an effective recruiting tool for those considering a career in education.
Under the program, Direct Loan borrowers who make 120 qualifying monthly payments (one payment per month for 10 years) under a qualifying repayment plan, while working full-time for a qualifying employer, to have the remainder of their balance forgiven. Unfortunately, this program was poorly run and few of the early beneficiaries saw their loans forgiven, sometimes to do small technical issues. In December 2021, the Department of Education announced it will retroactively credit public service workers for monthly payments they made on certain types of federal student loans that are ineligible for the program or for those enrolled in the wrong repayment plan, while the Department revamps the program to ensure participants realize loan forgiveness after making the requisite payments.
This discussion will help AACTE members and those they work with understand what to consider as they resume payments and/or apply to the PSLF program.
- Michael Rose, Senior Director of Government Relations, AACTE
- Rachel Gentry, Director of Government Relations at National Association of Student Financial Aid Administrators (NASFAA)
- Michael Yudin, Principal, The Raben Group
Register today to learn how you or the students you work with could benefit from the PSLF program and what you may have to consider as you begin repaying your Federal student Loans.