AFSCME Fights Proposed Changes to Public Service Loan Forgiveness Program

Proposed Changes to Public Service Loan Forgiveness Spark Union Backlash

The administration's recent proposal to alter eligibility criteria for the Public Service Loan Forgiveness (PSLF) program has met with strong opposition from AFSCME, a major public service union. This move could significantly impact many workers in public service roles, particularly those affiliated with AFSCME.

PSLF has been a lifeline for many AFSCME members burdened with student debt. The Department of Education's proposed rule aims to exclude public service workers employed by organizations perceived to oppose the administration's agenda from PSLF eligibility. This has prompted a strong response from AFSCME President Lee Saunders.

In a recent statement, Saunders remarked, “This billionaire-run administration continues to show how little they care about working families.” He criticized the proposal as a punitive measure against state and local governments, nonprofit hospitals, and community organizations that resist the administration's policies.

Saunders emphasized the selfless nature of public service work, noting that these careers are pursued for community benefit rather than financial gain. PSLF, he noted, provides crucial student debt relief in acknowledgment of this sacrifice.

He warned that dismantling the program could deter current and future public service workers, stating, “Gutting the program will push current workers out of public service and prevent the next generation from stepping in — leaving our already overstretched classrooms, hospitals and communities without the qualified workers we all depend on.” AFSCME is committed to challenging this rule to protect public service workers from what Saunders calls “unlawful and baseless political attacks.”

The PSLF program is designed to forgive the remaining balance of federal student loans after eligible workers make 10 years of payments while employed in public service. This initiative has already resulted in loan forgiveness for over 1 million public service workers, including many AFSCME members. The union has actively worked to improve PSLF under administrations supportive of worker rights.