The Public Service Loan Forgiveness (PSLF) program, a special program dedicated to reducing student loan debt for public servants in the District, has led to the forgiveness of over $1 of student loan debt for Washington, D.C. residents.

D.C. residents who have worked in the public sector for at least 10 years are able to apply for student loan forgiveness through the PSLF program, according to an Oct. 18 announcement by District Mayor Muriel Bowser (D). The program was created in 2007 by the United States Congress to encourage D.C. residents to work in the public sector. 

The program received renewed focus and attention in late 2021 with the creation of a waiver program to streamline the process, allowing borrowers to receive credit for past periods of repayment of student loan debt that would have not been accepted under the regulations of the original PSLF program, expanding the number of D.C. residents eligible for the program. 

Prior to 2022, only one resident had received student loan forgiveness through the program, but the waiver, along with increased awareness, has led to 15 residents receiving assistance, averaging $70,000 each in federal student loan forgiveness.

Federal student loan debt has become an increased conversation point in politics after President Joe Biden announced $10,000 of student debt for borrowers making less than $125,000 or households with less than $250,000. The Department of Education will also provide up to $20,000 in student debt cancellation to Pell Grant recipients. William English, an assistant professor in the McDonough School of Business, said that offering student loan forgiveness to public servants is a strategic move to both improve the public sector and offer relief to student loan borrowers. 

“If you go into public service, if you’re gonna work for the government or a public interest nonprofit, and you go into a career where you spend 10 years working for the government, then you can have your student loans forgiven,” English told The Hoya. “The end result is that this is essentially a subsidy to encourage people to get good educations and go into public service.”

The temporary PSLF waiver program, created in 2021, allows borrowers to earn credit for past repayments that would not have qualified under the previous PSLF program to alleviate economic stress from the pandemic.

English said the temporary waiver program was important to ensure borrowers did not fall short on repayment programs during the COVID-19 pandemic. 

“I think the waiver makes sense in the sense that you had this unprecedented period of economic turmoil, you didn’t want people to be disqualified or to lose months in this program because of  unforeseen circumstances,” English said. 

Bowser said that while the temporary waiver provided key relief for District residents during the COVID-19 pandemic, long-term loan forgiveness is a necessary step to encourage work in public service.

“This Public Service Loan Forgiveness temporary waiver program has been an important lifeline for public servants,” Bowser said in the press release. “Thanks to the Biden Administration and through the execution of the D.C. Student Loan Ombudsman, hardworking public servants are finally getting a fair shot.” 

The waiver aimed to attract more D.C. residents to work in the public service. According to Pew Research Center data, as the economy recovers from the COVID-19 pandemic, jobs in the public sector have lagged behind private employment opportunities. This reduction in public service workers has led to negative impacts on service delivery and the economic security of workers.

The program offers a way for D.C. officials to encourage work in the public sector, English said. 

“The most important thing I thought, and I think this is what the DC government is doing, is to make sure people understand there’s an opportunity here,” English said. “Take advantage of this opportunity, and even once the waiver goes away, the loan forgiveness program is still in place.”