“ I come from a poor family, but still want to give back to the community and participate in public service. I attended law school to become a public interest attorney, and I was lucky enough to get the position I always wanted. I rely on PSLF to continue to do this work. " (NLADA Survey 2015)
The U.S. House of Representatives could bring the PROSPER Act to the floor for a vote. This act pertains to higher education and would eliminate Public Service Loan Forgiveness (PSLF) for new borrowers. While current borrowers would still be eligible for PSLF benefits, the act would eliminate PSLF for anyone who started borrowing on or after July 1, 2018.
What does PSLF do?
- PSLF tackles crippling student debt in the U.S. by offering student loan forgiveness for those employed by nonprofit organizations or by government.
- This loan forgiveness program helps make a career in the nonprofit sector both a feasible and attractive option for many of Colorado’s best and brightest.
- Coloradans owe nearly $25 billion in student loan debt. PSLF reduces the burden of this debt for those who work in Colorado’s nonprofit sector.
- PSLF particularly benefits rural communities who have a harder time recruiting college graduates.
PSLF is crucial to recruitment of qualified and skilled employees: According to a 2015 study by National Legal Aid & Defender Association (NLADA), nearly half of public interest lawyers polled said they would not have been able to take their position, or would need to leave their position for a high paid, for-profit job if not for the current PSLF program.
- Our nonprofits contribute over $32.1 billion to Colorado’s economy.
- The nonprofit sector employs about 8% of Colorado's population.
- An individual working in the public sector from 25 to 59 will earn $1,500,000 less than a private sector counterpart over the course of a career.
- Our state relies on nonprofits to carry out many of the public and community services that are usually associated with government.
- According to the National Council of Nonprofits, nearly 2 out of 5 (38%) of borrowers approved for PSLF work in the nonprofit sector.
A thriving nonprofit sector strengthens our communities and quality of life in part by leveraging the generous contributions of money and time from Coloradans. By making nonprofit jobs a favorable option for graduates, PSLF helps ensure that nonprofits continue to keep Colorado economically strong, environmentally healthy, and culturally robust.
Because of the importance of PSLF to the Colorado nonprofit community, we oppose this bill being brought to the floor with the provision to eliminate PSLF for future borrowers.