CFPB Does it Again! New Toolkit Aims to Help Educate Borrowers on PSLF Options.
The Consumer Financial Protection Bureau (CFPB), our new BFF, launched a toolkit yesterday to empower school districts and other public service organizations to help their employees pay off student loan debt. The CFPB is asking these employers to make a pledge to inform their employees of their options.
According to a report released yesterday, the CFPB estimates that more than 25 percent of the U.S. labor force is in public service. This includes teachers, librarians, firefighters, military personnel, law enforcement, first responders, nurses, and social workers. There are a number of special loan programs to assist these workers. For example, in 2007, Congress created the Public Service Loan Forgiveness program for public servants who pay their federal loans on time for ten years. People working at a nonprofit or those working for a federal, state, or local government are eligible for the program.
To help employers provide information about loan forgiveness programs to their employees, the CFPB has unveiled a toolkit – the Employer’s Guide to Assisting Employees with Student Loan Repayment. The toolkit offers practical advice to public sector employers and employees, advising that an early start can make the difference of thousands of dollars. It includes:
- An action guide for employers that details the steps they should take in providing information to their employees, such as helping employees certify and checking in with them annually about their repayments;
- An action guide for borrowers that tells them how to qualify for benefits, what their options are, and important things they should consider;
- A sample letter from public service employers to employees that says they are a qualified employer under the federal Public Service Loan Forgiveness program; and
- A set of frequently asked questions, like how an employer can help his workers know whether they are in the best repayment plan.
To learn more about PSLF, visit our tools page. To use the CFPB's new toolkit, click here.
