Public Service Loan Forgiveness Key to Retaining U.S. Health and Education Workforce

The recent Negotiated Rulemaking Public Hearing held on April 29, 2025, highlighted critical discussions surrounding the Public Service Loan Forgiveness (PSLF) program and income-driven repayment plans, which are vital for many public service professionals. Stakeholders from various sectors, including healthcare, education, and law enforcement, voiced their concerns about proposed changes that could significantly impact workforce retention and taxpayer costs.

One of the primary issues raised was the potential narrowing of eligibility for PSLF, which has been instrumental in attracting and retaining talent in essential public service roles. For instance, the healthcare sector is facing a projected shortfall of 86,000 positions and 336,000 registered nurses by 2036. Many healthcare professionals rely on PSLF to manage their student debt, and any reduction in eligibility could exacerbate staffing shortages, leading to longer wait times and increased healthcare costs for taxpayers.

In education, over 400,000 teaching positions remain vacant or filled by uncertified individuals. The PSLF program is crucial for retaining teachers, particularly in charter schools that often operate on tighter budgets. Stakeholders emphasized that eliminating certain repayment plans would disqualify many educators from receiving necessary loan forgiveness, further straining the education system.

Public safety was another significant concern, as prosecutors and law enforcement officials highlighted the retention crisis within their ranks. Many experienced attorneys are leaving public service due to overwhelming student debt, which threatens the ability to prosecute cases effectively and maintain community safety. The PSLF program serves as a lifeline for these professionals, allowing them to serve their communities without the burden of crippling financial strain.

Participants also called for a streamlined federal student loan system to alleviate the backlog of applications and improve access to forgiveness programs. The current system has left many borrowers in limbo, unable to make progress toward loan forgiveness while facing high payments they cannot afford.

As the meeting concluded, it was clear that preserving and enhancing the PSLF and income-driven repayment programs is essential not only for the individuals who benefit from them but also for the broader community. The discussions underscored the need for government action to ensure that public service roles remain viable and that taxpayers are not left to shoulder the burden of an underfunded workforce. The outcomes of this hearing could shape the future of public service employment and the financial well-being of countless professionals dedicated to serving their communities.