Bill Overview
Title: Strengthening and Improving Public Service Loan Forgiveness Act of 2022
Description: This bill makes changes to the Public Service Loan Forgiveness (PSLF) program, including by (1) lowering the number of monthly payments required for loan forgiveness from 120 to 60; and (2) making permanent certain limited waivers, such as a waiver that allowed certain late or partial loan payments to count as qualifying payments for PSLF loan forgiveness.
Sponsors: Rep. Courtney, Joe [D-CT-2]
Target Audience
Population: Individuals with student debt working in public service roles globally
Estimated Size: 20000000
- The Public Service Loan Forgiveness (PSLF) program is designed for individuals employed in public service jobs.
- Public service jobs can include roles in local, state, and federal government, as well as jobs in non-profit organizations.
- The program primarily targets individuals with federal student loans who work full-time in public service.
- There are approximately 20 million public sector workers in the United States as of the latest data.
- Eligibility for PSLF also extends to non-U.S. citizens who are eligible noncitizens and work in qualifying public service jobs globally, though the primary focus is U.S. citizens and residents.
Reasoning
- The public service workforce is diverse, including people in varied occupations like teaching, health care, and government administration.
- A significant portion of the public sector workforce seeks loan forgiveness, as student loans are a common burden among those with higher education degrees.
- The impact varies by demographic: younger employees with higher loans and long careers ahead will be more affected than older employees nearing retirement.
- Urban areas have higher concentrations of public service employees compared to rural areas, affecting geographic distribution of impacts.
- The policy will mainly benefit those who are early to mid-career and have student loans. Others like low-debt individuals or those nearing retirement may not be greatly affected.
Simulated Interviews
Public School Teacher (New York, NY)
Age: 29 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 15/20
Statement of Opinion:
- I'm relieved that the reduction in payments will make it easier to achieve loan forgiveness while staying in the teaching profession.
- This change could allow me to focus more on my personal savings and possibly buy a home sooner.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 7 |
| Year 20 | 9 | 7 |
Registered Nurse at a non-profit hospital (Houston, TX)
Age: 35 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 12/20
Statement of Opinion:
- With this policy, my monthly payment period is cut in half, which is a huge financial relief.
- The savings will allow me to reduce stress and improve my work-life balance.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 7 |
| Year 20 | 9 | 8 |
City Government Administrator (Chicago, IL)
Age: 42 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 6.0 years
Commonness: 10/20
Statement of Opinion:
- I think this is a much-needed change for public servants who are dedicated to their roles for decades.
- This policy mainly benefits newer entrants; I've already paid most of my loans.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 8 | 8 |
Caseworker at a non-profit (San Francisco, CA)
Age: 30 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 20.0 years
Commonness: 14/20
Statement of Opinion:
- The policy will drastically change my financial outlook, allowing me to see an end to my large student debt.
- It will enable me to focus more on my career without constant anxiety about repayments.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 9 | 6 |
| Year 20 | 9 | 7 |
Public Defender (Boise, ID)
Age: 50 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 8/20
Statement of Opinion:
- At my age, this policy won't impact me as much because I've paid off most of my loans.
- I'm glad it'll help new lawyers who choose public service, which is hugely underpaid.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Social Worker (Miami, FL)
Age: 27 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 18.0 years
Commonness: 13/20
Statement of Opinion:
- Knowing that my student debts can be forgiven quicker is a huge relief for my financial planning.
- It makes it possible for me to consider furthering my education without immense debt.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 8 |
Fire Department Captain (Los Angeles, CA)
Age: 45 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- This policy is fantastic for those starting in public service, but we in established careers will see minimal changes in our forgiveness schedules.
- Nevertheless, supporting the program is important to maintain a steady workforce.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 9 | 9 |
Public Health Researcher (Philadelphia, PA)
Age: 24 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 20.0 years
Commonness: 14/20
Statement of Opinion:
- This change makes public service careers more attractive by easing student debt burden quickly.
- It's encouraging for young professionals like myself.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 9 | 6 |
| Year 20 | 9 | 7 |
Retired Librarian (Seattle, WA)
Age: 60 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 9/20
Statement of Opinion:
- The reduction in payments for forgiveness is great for future public sector workers, although it comes too late for me.
- It's a strong step in the right direction for the future workforce.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Police Officer (Denver, CO)
Age: 32 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 11/20
Statement of Opinion:
- Reducing the burden of student loan repayment makes public service roles more viable for people like me who might want to advance their careers with further education.
- It alleviates some long-term financial pressure.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 8 |
Cost Estimates
Year 1: $10000000000 (Low: $9000000000, High: $12000000000)
Year 2: $11000000000 (Low: $9500000000, High: $12500000000)
Year 3: $12000000000 (Low: $10500000000, High: $13000000000)
Year 5: $13000000000 (Low: $11000000000, High: $14000000000)
Year 10: $15000000000 (Low: $14000000000, High: $16000000000)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- The cost to the government is significantly impacted by the number of additional qualifying loan forgiveness recipients due to policy modifications.
- Potential increases in administrative resources and systems to handle an elevated volume of forgiveness claims.
- Economic benefits linked to debt relief might offset some costs through increased spending, though not enough to fully counterbalance expenditure spikes.
- Analyzing long-term impacts requires monitoring actual uptake and forgiveness dynamics as operational data becomes available over time.