Recruitment and retention of skilled employees is a priority for colleges and universities. In the landscape of higher education, where budgets are tightly controlled and incentive options can be limited, it is imperative to use all the tools available. One with significant value to an employee—and zero cost to the employer—is Public Service Student Loan Forgiveness (PSLF), a program through the U.S. Department of Education’s office of Federal Student Aid. Through PSLF, the average amount of loan forgiveness for an eligible borrower as of July 2024 was nearly $65,000, making the program, which grants federal loan forgiveness to those who have made 120 monthly payments while working full time in public service for a qualified employer.
PSLF can offer significant financial relief to public service employees carrying outstanding federal student loan debt, but many are not aware that they may qualify for this opportunity, which is available to not-for-profit college and university employees who hold a balance on their direct federal student loans.
How Can HR Help?
Human resources personnel are uniquely positioned to use PSFL as part of a broader strategy to attract and retain high-quality faculty and staff. “HR can spread the word to current employees and use loan forgiveness as part of a retention and recruitment strategy,” said Julie Burrell, PhD, in a post for the College and University Professional Association for Human Resources.
Burrell noted several ways that HR officers can efficiently share this information and work with employees who are ready to submit their requests for loan forgiveness. One suggestion is to make sure HR personnel are applying for the program themselves. “With firsthand experience, you and your team will be able to speak knowledgeably about the process,” she said.
Other tips include publicizing PSLF as a significant benefit to all employees, even adjunct, nonexempt, and part-time staff, as the program stipulates full time work as 30 hours per week or more, which can apply to some employees in those positions. Burrell said posting information about the program online, through benefits pages, and on employee portals, will help spread the word. Also, she said, “Consider appointing a knowledgeable point person on campus, like a financial aid officer, to help answer employee questions.”
Those who pursue PSFL will need their employment certified by the college or university. Ensuring the HR team is aware of the program and its requirements is essential because, according to the Federal Student Aid office, “Dates of employment can be certified by an official who has access to the employee’s employment or service records and is authorized by your organization to certify employment or service. This will often be someone in the human resources department, though in some cases it may be a direct supervisor or another individual authorized to certify.”
Putting It Into Practice
Auburn University, the University of Pittsburgh, and the University of Alabama at Birmingham offer several examples of how HR personnel can provide PSLF information and guidance for employees through online presence, partnerships with outside organizations, and direct contact.
Auburn University has retained the investment advisory firm Johnson Sterling to provide application guidance and offer a related course. led by one of the firm’s advisers through ElevatED, Auburn’s employee education center. The HR area of the university website has a page dedicated to PSLF that provides resource links, a robust list of frequently asked questions, and an embedded video by a Johnson Sterling adviser detailing the program as well as other aspects of student debt that relate to employee financial health.
On the HR web page for the University of Pittsburgh, faculty and staff are encouraged to enroll in the free Savi Essential Service Benefit and connect directly with a representative to learn more about PSLF. Current employees can schedule an appointment to review information, determine if they are eligible for PSLF, and obtain help completing the necessary paperwork. Additionally, former employees are offered detailed assistance with the application process.
As part of the University of Alabama at Birmingham’s holistic approach to financial wellness, employees are provided with extensive online learning resources related to financial counseling, savings and retirement, family finances, student loan assistance, and more. The HR website includes an easy-to-find online tool for scheduling an in-person appointment to receive support completing PSLF forms.
As HR departments continue to innovate efforts to recruit and retain employees, sharing insight and offering support for PSLF is a great way to offer assistance for those with student loan debt.
