The CFPB has released a report analyzing existing benefits and options for public service organizations. The report sets forth information on benefits and loan repayment programs for public sector employees. The report also provides recommendations for policymakers including whether loan repayment benefits for public service can be simplified and whether current policy discourages employer engagement in addressing high levels of student indebtedness (e.g., tax treatment of student loan repayment programs).
In conjunction with the release of its report, the CFPB announced that it was launching a toolkit designed to help public servants address student loan debt. The toolkit “offers practical advice” to public sector employers and employees including an action guide for borrowers that advises them how to qualify for benefits, a sample letter for public employers to send to its employees about being a qualified employer for loan forgiveness purposes, and frequently asked questions. The CFPB also launched a public service pledge on student debt to help public service employers help employees address student loans. Two entities, including Richmond Public Schools in Virginia, have signed on to the pledge.