In June, Madeline Howe had $40,000 in student loan debt she was paying on loans for a master’s degree in social work. By the end of July, her balance was zero. Though this may sound akin to winning the lottery, it happened after years of Howe struggling to pay the $84,000 it cost to achieve her graduate degree. 

“When I graduated in 2007, I deferred my loan for a year as I was unable to pay my monthly rate as I looked for a job,” said Howe, who works in the child welfare system. 

Once she found a job, it still took her almost three years to become financially stable enough to submit her monthly payments to the Public Service Loan Forgiveness program to eventually qualify for debt forgiveness. 

“I paid as much as I could, when I could, but it was not until 2010 or 2011 that I was finally able to pay on a consistent basis,” she said. “Even still it was a challenge, but I couldn’t continue to be in default. For a pretty significant time I was moving money between my checking and savings to make sure I could keep up.” 

Ultimately, she made more than the 120 payments required for the PSLF program. By then, the 41-year-old still had about $40,000 in student debt that she would have kept paying for likely another 10 years if not for the program. 

“It was a huge relief,” she said. “I am no longer responsible for making those payments.” 

Like so many others who go into social work, Howe applied for large loans to achieve the educational requirements of her career field while also discovering that her work wouldn’t pay enough for her to whittle down the mountain of student loan debt in less than two decades. But unlike some of her peers, she had an advantage in receiving help covering the cost of her bachelor’s degree. 

“I had the great fortune that my parents paid for my undergraduate degree,” she said. “They did tell me ahead that if I wanted to further my education that I would be financially responsible. The $84,000 was only for my graduate degree.” 

Howe achieved her master’s degree the same year the PSLF program started.

Finally, 15 years later, she realized with help from Sarah Christa Butts, director of public policy for NASW, that she qualified for the PSLF program, which normally requires all of the following:

• Working 10 years with a U.S. federal, state, local, or tribal government or not-for-profit organization. Federal work includes the U.S. military service.
• Working full-time for that agency or organization.
• Having a Direct Loan or consolidating other federal student loans into a Direct Loan.
• Repaying loans under an income-driven repayment plan.
• Making at least 120 qualifying payments.

NASW members can read the full story at NASW Social Work Advocates magazine after signing in here. 

NASW views student loan debt relief as a social justice priority – especially when placed within the context of a professional field in which the high educational debt burden intersects with historically low salaries and reimbursement for the critical services rendered by this essential workforce.

To further elevate this critical workforce issue, NASW secured an oral testimony opportunity for two NASW members to share their personal stories and experiences with student loan debt. The Senate Banking, Housing and Urban Affairs Committee hosted a listening session on May 3, 2022, in which NASW members, Megan Bailey and Deborah Harburger, testified about the burden of student loan debt. A recording of the listening session is available on the Committee’s website.

Megan, who continues to work in community mental health, shared that although she was able to qualify for the National Health Service Corps program, she continues to have a large debt burden as repayment funds received only primarily covered much of accrued the interest on her student loan debt. In her testimony, Megan said, “I worry about the pipeline into the health and behavioral health professions and whether today’s high school students will continue to choose careers in mental health and behavioral healthcare, with such exorbitant tuition, low salaries and difficult working conditions.” Megan is again seeking student loan debt-relief through the temporary waiver, and is currently awaiting a decision from the Department of Education on her PSLF application.

Deborah, has worked for 18 years for the State of Maryland. She participated in the Child Welfare Title IV-E Program, a federal training program which helped pay for her graduate work. In her testimony, Deborah said, “In 2017, after completing 10 years of public service, I was stunned to receive a denial, informing me that, while my payments had been on time and my employment qualified, my particular federal, student loans were not eligible.” Deborah was then advised to move her loans into a different program and to “re-start the 10 year and 120-payment clock.” Like Megan, Deborah is again seeking relief, and is awaiting a decision from the Department of Education on her PSLF application through the temporary waiver.

On May 5, 2022, after the Megan and Deborah’s testimony, the Senate Banking, Housing and Urban Affairs Committee hosted a hearing on student loan debt, Examining Student Loan Servicers and Their Impact on Workers. Mike Pierce, Executive Director of the Student Borrower Protection Center, with whom NASW partners on student loan debt advocacy, provided testimony at the hearing. He called for improvements in the student loan debt process and cancellation of student loan debt, saying, “Ending the student debt crisis is a matter of equity and a matter of justice.”

To find out more about NASW‘s advocacy efforts and student loan debt relief, visit the NASW website.

The National Association of Social Workers supports two events that address student loan debt forgiveness:

Protecting America’s Frontline Workers: A Borrower Town Hall on Public Service and Debt Relief

September 9 from 7 – 8 p.m. ET
Join the Student Borrower Protection Center and Student Debt Crisis Center for a town hall that will spotlight why public service workers are having problems getting promised student loan forgiveness and why the Biden Administration must restore the promise of loan forgiveness.

The town hall will include remarks from American Federation of Teachers President Randi Weingarten, a panel discussion with borrowers struggling to get loan forgiveness, information for borrowers on managing student loans and to learn about getting involved in a campaign to restore the promise of Public Service Loan Forgiveness (PSLF).

Register for “Protecting America’s Frontline Workers” Town Hall

Social Workers & Public Service Loan Forgiveness

September 15 from 6 – 7 p.m. ET
The National Association of Social Workers (NASW) is partnering with the Student Borrower Protection Center to host a webinar highlighting what social workers need to know about managing their student loans, information on accessing the Public Service Loan Forgiveness (PSLF) program, and to learn about getting involved in a campaign to restore the promise of PSLF.

Register for “Social Workers & Public Service Loan Forgiveness”

Tell the Department of Education Your PSLF Story

Are you one of the millions of people struggling to access Public Service Loan Forgiveness (PSLF)?

Tell President Biden, Secretary Cardona, and the Department of Education to eliminate student debt for those who have worked a decade or more serving their community. Now is the time to fulfill the promise of the PSLF program.

Congress created the PSLF program 14 years ago to alleviate the burden of student debt for dedicated public service workers. The idea was simple: work in public service for ten years and have your remaining student debt forgiven. Unfortunately, this promise has been denied at every turn. How bad is it?

• 98 percent of PSLF applicants have been denied loan forgiveness.
• The nearly 150,000 PSLF application backlog is causing borrowers months of delay and uncertainty around repayment.

Your story about your PSLF experience matters!

On Thursday, September 19, staff from the National Association of Social Workers (NASW), attended an oversight hearing on implementation of the Public Service Loan Forgiveness (PSLF) Program. Held by the House Education and Labor, Higher Education and Workforce Investment Subcommittee, the hearing was presided over by its chair, Congresswoman Susan Davis (D-Calif.), who is also a social worker.

The hearing discussed the failures of the PSLF, which was created in 2007 by Congress when it passed the College Cost Reduction Act.

NASW has worked to protect and preserve student loan forgiveness programs like the PSLF, which calls for individuals who serve the public good to make 120 on time payments to direct student loans while working full time for an approved employer. At the end of 10 years, they may qualify to have their remaining loans forgiven.

The first cohort of potential awardees of PSLF program were eligible to apply for forgiveness in 2017. The Government Accountability Office (GAO) found that the Department of Education approved just 96 of 28,000 applicants. In 2018, Congress also established the Temporary Expanded Public Service Loan Forgiveness (TEPSLF) program to help individuals who applied for but did not qualify for PSLF. Again, the GAO found that 99 percent of TEPSLF applicants were rejected.

Congressman Lloyd Smucker (R-PA), ranking member of the subcommittee, remarked that the committee should be looking at solutions to improve the program. He argued that the GAO stretched the truth. He noted that 71 percent of TEPSLF applicants were denied since they had not submitted a PSLF application prior to applying for TEPSLF, a requirement of the program.

Three people told panelist at the hearing of their experiences with the PSLF program.

Kelly Finlaw, a teacher in New York and an applicant to the PSLF, explained that she put herself through college with assistance from federal student loans. She has worked in the New York City public schools since graduating in 2006. In 2007, when the PSLF passed she worked to make sure she made qualified payment through her loan servicers. She explained that she checked in annually with the servicer to make sure she was on track to earn loan forgiveness and was assured that she just needed to keep making payments. After 120 on time payments, she applied for PSLF only to be told that one of her loans was not a direct loan and therefore she was ineligible for the forgiveness. She is starting the process over again and will work to make payments for an additional 120 months.

Sadly, Finlaw’s story is like those we have heard from social workers who try to qualify for PSLF. NASW is working with organizations on the PSLF Coalition to help protect and preserve the PSLF program.

Yael Shavit, assistant attorney general of Massachusetts, discussed the serious concerns her office has about implementation of PSLF. It is a program that is critical to borrowers and society at large. Her office has a lawsuit against PHEAA for its handling of the PSLF program. James H. Steeley, president and chief executive officer, Pennsylvania Higher Education Assistance Agency (PHEAA) declined to come before the subcommittee. PHEAA is the sole servicer of the PSLF program.

Dr. Matthew M. Chingos, Ph.D., vice president for Education Data and Policy at the Urban Institute, discussed the complex design of the program where borrowers must prove their work in an appropriate setting and must use income contingent payments. He noted that the onus should be on the federal government to approve PSLF applicants. He talked about the targeted nature of the grant programs and specifically called out social workers.

Members of the subcommittee made comments and asked questions of the panelists. Congressman Joe Courtney (D-Conn.) said he has heard from constituents about the PSLF program and revealed that the Trump Administration has zeroed out the program in each of its budgets. Shavit noted that the servicer failed to timely review loans, prolonged repayment obligations, and failed to track payments.

Congresswoman Elise Stefanik (R-NY) talked about a need to reform the program into staged forgiveness and capping the amount any one borrower can receive.

Congressman Mark Takano (D-Calif.) noted that the administration is purposefully sabotaging the PSLF program.

During one of the more curious moments of the hearing, Congressman Glenn Grothman (R-WI) argued that the program treated private-sector workers as second-class citizens. One of the purposes of the program is to encourage individuals to work in the public or non-profit sector. It recognizes that individuals often sacrifice more lucrative jobs to work in these settings. Congresswoman Pramila Jayapal (D-Wash.) argued that public service is an important public good.

Additional testimony can be found on the House Education and Labor page.

We were pleased when on Friday, June 29, Congress passed an extension of the low interest rate on government-subsidized student loans, just days before the rate would have doubled. The measure was included in a transportation bill and extends the current 3.4 percent student loan rate for one more year at a cost of an estimated $6 billion. The measure was sent to President Barack Obama for his signature. The House and Senate approved the deal (as a piece of an overall transportation funding bill).

All social work students and professional social workers should consider volunteering and advocating for a cause they care about. With an issue like educational debt, social workers can only serve their clients if they are able to pay off their educational debt, and make comparable salaries, which are key components of the Social Work Reinvestment Initiative http://www.socialworkreinvestment.org/.  So often, as interns, we believe that we need to know certain people to be able to attend events such as the one on Capitol Hill or at the White House and have an impact on policy making.  However, by being proactive and organizing, all social workers and students can have their voice heard on issues of importance to our profession.

Read more about the NASW Code of Ethics http://socialworkers.org/pubs/code/default.asp, which outlines the obligation of social workers to engage in social and political action and to learn more about advocacy opportunities for students, particularly on educational debt, visit www.campusprogress.org/<http://www.campusprogress.org/.

This post was written by an NASW MSW intern.

Established in 1972, the National Health Service Corps, administered by the Health Resources and Services Administration (HRSA), has provided health care to communities across the country through the service of more than 41,000 primary health care practitioners over its nearly 40-year history.  The NHSC provides financial, professional and educational resources to medical, dental, and mental and behavioral health care providers who bring their skills to areas of the United States with limited access to health care.

These competitive awards were made through the NHSC Loan Repayment Program and the NHSC Scholarship. To read the entire press release, go to: http://www.hhs.gov/news/press/2011pres/10/20111013a.html

Social workers are eligible for the National Health Service Corps.  To read about information on NASW loan forgiveness page, go to: http://www.socialworkers.org/loanforgiveness/nhsc.asp

Sacramento– Assembly member Pedro Nava (D-Santa Barbara) announced today that his measure,, was signed by Governor Arnold Schwarzenegger.

“Today is a new day for California social workers who will now qualify for federal financial assistance, similar to social workers in other states,” said Nava. “Social workers play a vital role in our communities and are on the front lines when peoples’ lives are in crisis. We owe it to them to make sure that have access to all possible resources so that they can continue to serve all of us in California.”

AB 2167 will replace California’s current state-administered licensing exam with a national exam administered by the Association of Social Work Boards.  By making this change, California social workers will be eligible for the National Health Service Corps Loan Repayment Program which provides up to $50,000 for educational costs for eligible participants. This federal program encourages social workers to work in un-served and underserved areas throughout the country.

Said Rebecca Gonzales, Director of Government Relations for the National Association of Social Workers, California Chapter, “We are very pleased the Governor signed this bill. California Social workers will now be able to qualify for this vital federal program. We commend Assembly member Nava for his work hard work on this bill.”

Private student loans are considered to be one of the riskiest ways to pay for college, yet a significant number of students have private student loans as well as, or instead of, safer federal student loans.Private student loans typically have uncapped, variable rates that lack the fixed rates, consumer protections and flexible repayment options of federal student loans and are extremely difficult to discharge in bankruptcy.

NASW continues to advocate for public policies that make higher education more affordable for social worker students and professionals who are repaying their student debt obligations. You can view additional resources about federal and state loan forgiveness programs by going to www.socialworkers.org/loanforgivenss and for information about our school social work advocacy click here.

While some colleges and universities have already switched to direct lending, others are racing to switch from private lenders to the U.S. Department of Education by July 1, 2010. The lending overhaul, which would eliminate a program that subsidizes banks and other providers of federally backed loans, is projected to save the federal government $61 billion over 10 years with more than half of the savings channeled to Pell grants for low income students. More than 8 million low income students rely on these grants to fund their education.

For more information about our advocacy efforts to make higher education more affordable go to www.socialworkers.org/loanforgivness

To join the Advocacy listserv, go to http://capwiz.com/socialworkers/mlm/verify/