WASHINGTON — The American Psychological Association applauded the U.S. Department of Education for making administrative fixes to the Public Service Loan Forgiveness program that will affect hundreds of thousands of borrowers, including many psychologists with federal student loan debt.
“The American Psychological Association has long advocated for common-sense changes to PSLF. We commend the Department of Education for heeding our recommendations,” said Arthur C. Evans Jr., APA’s chief executive officer. “APA is committed to working with the department and Congress to make further regulatory and statutory fixes that will strengthen federal student loan programs for current and future borrowers.”
PSLF encourages individuals to pursue public service by forgiving the balance of eligible federal loans after 10 years of payments. The latest fixes will:
- retroactively count prior payments for borrowers enrolled in PSLF, irrespective of federal loan type or repayment plan;
- review previously denied applications for errors and give borrowers more options to appeal;
- simplify the application process; and
- improve outreach to PSLF-eligible borrowers who may not be aware of the program.
The Education Department estimates that these temporary changes will bring more than 550,000 people closer to debt cancellation, including 22,000 who will be immediately eligible.
“The need for licensed behavioral health professionals remains great across the United States, with every state having documented shortage areas,” Evans said. “The greatest demand is expected in the public sector, with rural communities facing especially serious challenges to recruiting licensed professionals. COVID-19 has further amplified these trends.”
Many psychologists are either already in or considering careers in public service. However, a doctorate in psychology requires a substantial financial investment, as most psychologist practitioners graduate $100,000 or more in student loan debt.
“PSLF is exactly the type of program to help mitigate this financial concern and ease the pathway to public service for behavioral health care providers, thereby bolstering this critical workforce,” said Evans.
However, mainly due to widespread mismanagement of the program, only a small fraction of borrowers received loan forgiveness since the first cohort became eligible in 2017. This has created confusion and mistrust, deterring borrowers from applying.
“Many psychologists have heard of PSLF and are interested in using the program to enter careers in public service,” Evans said. “However, they are also aware of the issues associated with it, which has led many to question its validity. That is why these changes are so necessary.”
As the Education Department begins a series of rulemaking sessions this fall related to its student loan portfolio, Evans urged it to consider recommendations that APA made in comments to the negotiated rulemaking listening sessions (PDF, 433KB)opens in new window this summer, as well as a recent Request for Information (PDF, 614KB)opens in new window, not just on PSLF, but on income-driven repayment programs and treatment of student loan interest.
“The department must build on these first steps to ensure that PSLF lives up to its intent as a broad-based program for service and loan forgiveness,” he said.