Everyone tracking this?

Aba filed suit:

http://www.americanbar.org/content/dam/aba/images/abanews/PSLF_filing_122016.pdf

Sign of things to come?

This is the year some people will finally start applying for foregiveness right?  Big year.  I hope Heather does some more blogging here!

Here’s another article about this:

http://www.marketwatch.com/story/work-as-a-public-servant-and-get-your-student-loan-forgiven-not-for-these-people-2017-03-28

Scary!

I read the whole lawsuit, and the corresponding letter from the dept of ed….. I think the ABA has a good case. Dept of Ed sent a letter to the ABA saying they didn’t qualify because they weren’t able to “demonstrate that the primary purpose of the ABA is to provide ‘public interest law services ’ [as] the term is defined in the PSLF regulations.”

Problem is, the law doesn’t say “Primary purpose”...it only says “A private organization that provides the following public services: [long list of services]”. If they initially meant it to mean primary purpose, it is poorly worded and could be interpreted either way, but if they do an literal interpretation, IMHO ABA should win. I noticed that the ABA correctly pointed out this fact in 106, and the Dept of Ed just ignored it.

I agree that the ABA could have a good case, and that actually concerns me a bit.  The projected costs associated with PSLF have already drawn a certain amount of fire from some.  Now consider how far upward those projections will have to be adjusted if the ABA and its extremely broad definition of qualifying employment prevail in court.  Ultimately, it would just create that much more impetus for DOE to pull the plug on PSLF entirely.  (Given what we know about the current administration, I’m a little surprised steps haven’t been taken in that direction already.)  If that happens, I like to think that they’d grandfather in people who’ve already acted in reliance on the program.  But the phrase “don’t hold your breath” also comes to mind.

Long story short: I get where the ABA is coming from.  But I hope they’re not killing the goose that lays golden eggs.  (Or, more accurately, the goose that has promised to lay a golden egg as soon as someone makes 120 qualifying payments.) 

Yes valid points, but I think we need a case like this to pinpoint exactly how the department of ed plans to accept or reject a qualifying non-profit employer. I don’t think the projections would go that much higher, as the most common type of nonprofit is a 501c3 and those automatically count… the category in question are those non-profits who are not govt and not a 501c3, which I believe is not nearly as large of a group.

Hard to say what the current administration will do. At least Trump has “said” he’s for a more forgiving IBR plan and despises the way govt makes a profit off of student loans. Whether or not he’ll actually do anything is a big question mark. I hope that anyone who has already submitted ECF forms can be grandfathered in, or at least anyone with loans prior to whenever they decide to make a change.

I just recently read this article: https://www.usnews.com/education/blogs/student-loan-ranger/articles/2017-04-05/student-loan-borrowers-dont-panic-about-forgiveness-eligibility, and reading your post above, I have a couple questions: 1) Are all GOVERNMENT jobs considered certified employers under PSLF? and 2) Where do I find the list of 501c3 public services, hart47?

My situation is that I worked for 3 years at a 501c3 economic development organization for Washington State and the work I did was on energy efficiency economic development - funded by a Federal i6 Green Challenge Grant. I submitted the employment certification and got letters saying that job was certified.

Now I work for a local government as an urban planner.

I understand that the 3-year 501c3 job payments may be in question, but my time at the local government shouldn’t be. Am I making reasonable assumptions at this point? (until the ABA v. DoE case is settled?).

1. I don’t know if all government jobs count, but I would think that they should.

2. Are you asking for a list of eligible 501c3 employers, or a list of services they provide? If a company is a 501c3, they qualify (unless you’re a reverend or priest in a religious organization). The type of service they provide is irrelevant. If they are NOT a 501c3, they might still qualify. Look at the law below (in particular 5 - (1) for a listing of services required in this category)
3. Why would your 3-year 501c3 payments be in question? the only nonprofits in question are non-501c3 and non-government

Public service organization means:

(1) A Federal, State, local, or Tribal government organization, agency, or entity;

(2) A public child or family service agency;

(3) A non-profit organization under section 501(c)(3) of the Internal Revenue Code that -

(i) Is exempt from taxation under section 501(a) of the Internal Revenue Code; and

(ii) Is not an organization engaged in religious activities, unless the qualifying activities are unrelated to religious instruction, worship services, or any form of proselytizing;

(4) A Tribal college or university; or

(5) A private organization that -

(i) Provides the following public services: Emergency management, military service, public safety, law enforcement, public interest law services, early childhood education (including licensed or regulated child care, Head Start, and State funded pre-kindergarten), public service for individuals with disabilities and the elderly, public health (including nurses, nurse practitioners, nurses in a clinical setting, and full-time professionals engaged in health care practitioner occupations and health care support occupations, as such terms are defined by the Bureau of Labor Statistics), public education, public library services, school library or other school-based services; and

(ii) Is not a business organized for profit, a labor union, a partisan political organization, or an organization engaged in religious activities, unless the qualifying activities are unrelated to religious instruction, worship services, or any form of proselytizing.

Hi hart47,

I read in the US News article that only 501c3 organizations that provide services under 5.i. are eligible… but I didn’t have access to the text of the legislation. That’s what I wanted to know.

That’s also why I was questioning my work with the 501c3 economic development organization - because it doesn’t fall under the list in 5.i. But reading the text of the legislation, I understand that those services only apply to private organizations.

Thank you.

You should be good to go. The US news article states “While 501(c)(3) organizations are eligible regardless of what they do, other nonprofits, such as the ABA, have to be seen as providing one of the services listed above.”

If you see something different, let us know, but I didn’t see anywhere in the article which stated that 501c3 needed to do any of those services listed. It only applies to non-profit private organizations that are not 501c3 and not government.