26 September 2023

UNITED STATES: Secretary urged to reform PS loan scheme

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A coalition of organisations representing heavily indebted United States students is urging Secretary of Education, Miguel Cardona (pictured) to take urgent steps to reform the controversial Public Service Loan Forgiveness (PSLF) program.

In a letter to Mr Cardona, the coalition called on him to conduct a full, 90-day audit of the “broken” PSLF and to cancel the student loan debt of all borrowers who had completed the required 10 or more years of work in the Public Service.

In its letter, the coalition said that this should be done “regardless of their specific compliance with the PSLF program’s complex eligibility criteria”.

Executive Director of Equal Justice Works and one of the coalition leaders, David Stern said communities across the nation depended on passionate people who dedicated themselves to public service.

“Student loan debt is a huge barrier to taking relatively low paying Public Service jobs and the PSLF promises forgiveness after 10 years in such work,” Mr Stern said.

“Hundreds of thousands of people relied on that program only to be rejected; at Equal Justice Works, we believe our country must deliver on its promise to forgive the debt of Public Servants after 10 years of service, sacrifice, and contributions,” he said.

The push to address the troubled PSLF program comes amid an ongoing pressure campaign to convince President, Joe Biden to enact widespread student loan forgiveness via Executive Order.

Mr Biden has been resistant to using executive authority to cancel student debt, but the Administration is considering its options.

Recently, the Administration announced that lawyers under Mr Cardona would be exploring potential legal authorities that could be the basis for widespread student loan forgiveness.

However, it could be weeks or months before a decision is made.

Washington, 15 April 2021

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