Policy Proposal: Public Service Workers 

Public Service Workers Who Do Not Qualify for PSLF Loan Forgiveness 

Ask: We request that the Department of Educa�on issue rules as previously promised1

, on Public Service 

Loan Forgiveness (PSLF) for public service and public interest professionals who are currently ineligible 

for the PSLF program, due to the tax status of their employer(s).

Ra�onale:

Many public interest workers do not qualify for PSLF despite years of dedicated public service. This 

includes many essen�al frontline workers (e.g. social workers, nurses, nursing assistants, phlebotomists, 

lab technicians, case managers, dental assistants, peer support specialists, substance use disorder 

counselors, government contractors, teachers, former military, adjunct faculty, professors, etc.) who 

work for non-qualifying employers, which include both for profit and nonprofit organiza�ons and/or 

companies.

Examples:

• A social worker is employed by a non-profit nursing facility where he/she provides social work 

services to seniors. The social worker is eligible for PSLF and their employment is cer�fied for the 

purposes of PSLF. The nursing facility is purchased by a for profit company and the social worker 

is no longer eligible for PSLF despite con�nuous employment and public service in the same 

se�ng. These changes and resul�ng ineligibility for the PSLF program can occur without the 

awareness of the public service employee. 

• A traveling nurse is providing services at a nonprofit hospital, working alongside other medical 

professionals who qualify for PSLF, however he/she does not qualify for PSLF because they work 

for a for profit contractor.

• An adjunct professor works at several different universi�es, yet his/her service at private 

universi�es does not count for PSLF.

• Health and mental health providers in private prac�ce who see Medicaid and Medicare pa�ents 

are not eligible for PSLF.

• A public service worker who has already completed several years of cer�fied public service, is 

now employed in an organiza�on that is not an eligible employer for PSLF and they need to 

change jobs to be eligible for PSLF, despite their con�nued public service.

• Some nonprofit organiza�ons are designated as PSLF eligible employers and others are not. For 

example, employees of the American Bar Associa�on (ABA) are eligible for the PSLF program

even though the associa�on is a 501c6 and somehow the Na�onal Associa�on of Social Workers

(NASW) employees are not eligible for PSLF and NASW is also a 501c6. 

Consider All Public Service Workers for Student Loan Debt Relief and Possible Hardship Under the 

Department of Educa�on’s Current Rulemaking:

Ask: We request that all Public Service Workers be considered for student loan debt relief through the 

Department of Educa�on’s current rulemaking process. Further, many public service workers, especially 

1 See: htps://www2.ed.gov/policy/highered/reg/hearulemaking/2021/5pslfeligibility.pdf
those who are not eligible for PSLF, may be experiencing financial and other hardship, due to low pay 

and required educa�on costs, despite commi�ng their careers to working in the interest of the public.

Ask: Forgive/ cancel remaining student loans for borrowers who completed 10 years of public service 

and already qualify for PSLF forgiveness, but nonetheless have remaining or “hanging loans”.

Ask: Automate the process of qualifying for PSLF and eliminate applica�ons, when the Department of 

Educa�on knows who qualifies. Make the PSLF eligibility and forgiveness for public service workers 

automa�c.