August 5, 2021

Can Public Service Loan Forgiveness Help Recruit and Retain Employees?


Public Service Loan Forgiveness (PSLF) can help with employee retention and recruitment by offering your staff financial relief. Likewise, your company will benefit from the lower turnovers that may otherwise cost thousands of dollars depending on your industry.

However, many employers and employees may be unaware of this free federal program. In addition, they may overlook the proper implementations and qualifications to utilize PSLF effectively.

As an employer, you must understand how to manage PSLF correctly. Knowing the rules will also help you prepare to assist your employees with this program. Here is some essential PSLF information to help you and your employees mutually benefit from this federal program.

How Does PSLF Help With Employee Retention and Recruitment?

Employers who utilize PSLF may entice staff members with the possibility of federal student loan forgiveness. The PSLF program forgives a borrower’s federal student loans if they are a full-time employee of an eligible public service organization, hence the program’s name.

As the employer, you may offer your employees assistance in receiving PSLF benefits. This strategy would let your employees know that you have the resources to help relieve them of certain financial burdens. Likewise, potential recruits would be glad to know they may become eligible for student loan forgiveness by working with you.

With more employees staying with an organization, turnover rates would decrease. If you employ teachers, PSLF may help reduce teacher turnover rates and help your district save thousands of dollars. Some experts [claim](,) that teacher turnovers cost between $9,000 and $21,000, depending on the community.

What Are Eligible Public Service Organizations?

Your organization qualifies for PSLF if you are a:

  1. Government Organization: Includes all levels (federal, state, local, and tribal) and the U.S. military.
  2. Not-for-Profit Organization: Must be tax-exempt under section 501(c)(3) of the [Internal Revenue Code]( be tax-exempt under,any private shareholder or individual.).

How Do My Employees Qualify for PSLF?

Your employee must be a full-time worker of your eligible public service organization, meaning they must work at least 30 hours a week. They may work with multiple eligible organizations and qualify for PSLF if their combined work hours meet the minimum 30 hours per week.

In addition, an employee must have made 120 qualifying payments on their Direct Loans under an income-driven repayment plan. The Federal Student Aid office provides a PSLF and Temporary Expanded PSLF (TEPSLF) Certification and Application Form to help borrowers keep track of their qualifying payments. Your organization may offer assistance with this application form.

Conclusion: Can Public Service Loan Forgiveness Help Recruit and Retain Employees?

Yes, the PSLF program can help employee retention and recruitment. This free program allows federal student loan borrowers to receive loan forgiveness by working for a qualified organization. If your organization offers assistance with the PSLF program, staff members and potential recruits will likely stay for these financial relief benefits.

Most employers may not take advantage of this program due to a lack of knowledge. Some also doubt whether it is legitimate. Understanding how this federal program works is the first step for employers and employees to benefit from PSLF. As an employer, be sure to review your organization’s qualifications for PSLF to determine whether you can utilize this tool for employee retention.

Use Chipper for Lower Payments

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Use Chipper for The Best Path to Forgiveness

Finding your path to student loan forgiveness is easier than ever before. Chipper helps members find better Income-Driven Repayment (IDR) plans every day. Once enrolled in an eligible repayment plan, we can help you explore your forgiveness options and understand your path towards forgiveness. Sign up with Chipper today and get on track with your student loans.

Use Chipper for Round-Ups

Paying off your student loans doesn’t have to be a long and painful journey. Round-Ups are a way to directly pay off your loans with your everyday spending! By tracking your linked spending account(s), we will calculate the rounded up amount from each transaction in a week (IE spending $4.28 would add $0.72 to the weekly amount). We then initiate a payment towards your student loan for the weekly amount. Get chipping away on your student loans with Chipper today.

Use Chipper for Public Service Loan Forgiveness (PSLF)

The Public Service Loan Forgiveness (PSLF) program was created to provide relief to borrowers aiding the public sector. Unfortunately, 30% of applicants are denied due to incorrect paperwork. We can help! Chipper was created to solve this issue by assisting borrowers in understanding their options as well as allowing forgiveness eligible users enroll into the best forgiveness program available. Sign up for Chipper today to see your student loan forgiveness options and get the forgiveness you deserve.

Use Chipper for Teacher Loan Forgiveness (TLF)

The Teacher Loan Forgiveness (TLF) program was created to enable teachers working in Title 1 schools to receive student loan forgiveness of up to $17,500 (depending on their teaching subject). Chipper has helped teachers from all over the country qualify for TLF program and can help you get the forgiveness you deserve today. Find out if you qualify for forgiveness in minutes with our employer search tool.

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