Public Service Loan Forgiveness Archives

When the Public Service Loan Forgiveness program (PSLF) started in 2007, mental health professionals all over the country expressed optimism and relief. Student debt is crushing younger mental health professionals — hear two stories, in their own words, here. The PSLF program promised those working in nonprofit agencies and in public service that if they just stuck it out for 10 years, the remainder of their direct student loans would be forgiven.

Any kind of mental health work is challenging, but nonprofit clinics and public systems are notoriously difficult to work in. They offer low pay, low-functioning clients, a ton of paperwork, and often, little support. It’s no wonder that many counties struggle to fill those jobs at all.

For those clinicians who experience the work as a calling, though, the PSLF program offered a lifeline. It would be a reward for staying put in positions that most therapists understandably leave. For those who otherwise faced a possible lifetime of debt, PSLF suggested a way out.

It’s not going well so far.

Student loan debt has been a regular topic here, as it should be. Mental health professionals need to have graduate degrees, which often means taking on significant debt. The American Psychological Association reports that PsyD students in psychology now graduate with a median of $200,000 in student debt just from their graduate studies. The federal government offers loan forgiveness for those who work in government and nonprofit organizations, through its Public Service Loan Forgiveness program.

Recently, there’s been some concern over the fate of that program. Therapists and counselors currently working in nonprofit settings wonder whether they will in fact be eligible — or whether the program will still exist — by the time they complete 10 years of service. But their concern is (at least so far) not supported by what’s actually been happening.