Hi Heather,

I currently work for a 501(c)3 non-profit, but was thinking of changing jobs to a high performing public charter network in the Denver area.  The charter network is a 501(c)3, but when I checked the IRS 990 form, it mentioned all employees of the public charter are leased through a professional employer organization, which is a for profit corporation.  This PEO’s only responsibility is to manage the employment/benefits of this particular charter network.  It is not the hiring organization but I imagine it could be company on my paychecks.

I know others have posted related questions, but I was wondering if the condition of being “leased” had a novel component to it. Given the concept of “joint employment” I was wondering if the fact that this for profit is a PEO, and that the hiring/firing actually comes from the non-profit would make my joint employment eligible for PSLF. 

It’s an odd situation I know, and frankly, I might as well just stay at my job . . . but this could be a great opportunity,  and PSLF is non-negotiable for me.  If it is not PSLF eligible, do you have any suggestions for what I might do to workaround this reality?

Thanks so much for you work here.

-Ryan

I am going through the exact situation that you described. I work for a public, non-profit charter school. However, they use a PEO (co-employer) called Paypros that provides HR, benefits and paychecks.
The problem is that my W2 says Paypros and not the school’s name.
Basically, I know that I am legally an employee of the school under the “common law” outlined in the IRS codes, but the FedLoan servicing doesn’t seem to care.
They says, “your W2 says payrpos, you aren’t eligible.” they are not reasonable.
Anyway, I am still trying to appeal and I hope for the best. I may have to just go back to the school district, I lost over 2 years of payments, but I am glad I caught it now.
What happened with your situation?

Has there been any positive resolutions in your cases?

Heather:  Do you have any insights on this one, by chance?  It’s a growing issue, with the proliferation of PEOs.  My wife is in a similar circumstance (hired by 501(c)(3), but receives paycheck from PEO (Trinet) and, accordingly, W2 says Trinet and files taxes with Trinet as employer). I feel like there’s a good argument under the definitions in 34 CFR 685.219 that she is clearly"hired and paid” by the 501(c)(3), but of course the FedLoan Servicing folks are unhelpful and/or give differing answers based on who you get on the phone. Do you have any insights?  As always, we all very much appreciate your time and expertise.  -Jason

For me, this is the question that worries me the most. Employment is a new and exciting stage in my life. Now I’m graduating from college and preparing to search for a position of interest to me. I just have to finish the thesis and get a diploma. This source helps me because it’s important kind of work and therefore needs to be prepared correctly. After all, not only my assessment but also my future career may depend on this.