September 2, 2022

5BORO: Public Service Loan Forgiveness

Dear Friends,

As the summer winds down and many seek to get in a final spell of R&R, we are keenly aware that for many of you, the work never slows down.  The health and vibrancy of New York City is highly dependent on the incessant work of its public and nonprofit sector workforce. They need — and deserve — all the support we can give them. 

This is why we urge everyone to spread the word of an important and looming deadline — October 31st, 2022 — that, if they act in time, can bring major financial relief to 250,000 New Yorkers in public and nonprofit jobs who have active student loans. 

While much media attention over the past few weeks has focused on the new Biden Administration plan announced in August to address student debt — a plan that’s far from a done deal and may get blocked — it’s distracting from a much bigger and very tangible opportunity known as the Public Service Loan Forgiveness (PSLF) program. During the pandemic, Congress adopted into law a series of COVID relief measures, including much-needed changes to PSLF — correcting flaws previously prevented many from being eligible. Now, the newly designed program could reduce or eliminate most student loan debt for those 250,000 government and nonprofit employees in New York City. 

But the catch is that the temporary program is due to expire on October 31, 2022.   

Thankfully, the necessary actions to take advantage of the program are simple and straightforward. 

Please visit PSLF.nyc, a nonprofit campaign supported by local foundations and unions, to learn all you can about the Public Service Loan Forgiveness Program. Use this website as a resource to share with your employees, networks and on social media platforms so they can learn about their options for student loan forgiveness.  Encourage every employee with outstanding federal student debt to visit StudentAid.gov/PSLF and use the “Help Tool” to see if they are eligible before the October 31,2022 deadline. There is also a free webinar to learn more about the program for those who need more info or support.  

Once they login and get to the Help Tool, most borrowers complete in in less than 30 minutes — it’s way easier than doing your taxes, and promises a much greater return. 

Most student loan borrowers have between $25,000 and $50,000 in outstanding debt. This burden follows each person throughout their careers — and its the impact on this is even greater on persons of color and those with lower wages, like many in the public sector. It impacts every aspect of their lives from the apartments and homes they are eligible to rent or buy, to their ability to save for retirement.  Debt is among the leading factors that cause New Yorkers to move in and out of poverty, even when they are employed.  And even those who didn’t complete a degree but incurred federal student loan debt are eligible for this program. 

We appreciate and value the hard work of all those who are dedicated to serving New York City which is why we are sharing this information with you. Please don’t delay.  Act now to help secure the long-term financial security of your team through the Public Service Loan Forgiveness program. 

Sincerely,
The 5BORO Institute