• Student Loan Forgiveness Program Expanded
• Communication to the 2021 Retiree Class
• Now Available: Wespath Benefits and Investments Q2 Video Webinar

Student Loan Forgiveness Program Expanded

Effective July 1, 2021, eligibility rules for the Public Service Loan Forgiveness (PSLF) Program have been changed. This change creates a new opportunity for clergy members and other employees of not-for-profit organizations engaged in faith-based work to potentially have certain student loans forgiven under the PSLF Program.

The PSLF Program is administered by the U.S. Department of Education and designed to support careers in public service. The PSLF Program forgives the remaining balance of an eligible individual’s student loans that were provided under the federal government’s Direct Loan Program (or consolidated into a Direct Loan) after the individual has made 120 qualifying monthly payments.

To be eligible for loan forgiveness, an individual must be working full-time for a qualifying employer and meet other eligibility requirements. Not-for-profit organizations that are tax-exempt under Section 501(c)(3) of the Internal Revenue Code—such as local churches, annual conferences, church-controlled agencies and church-associated organizations—can be qualifying employers. In the past, applicable rules excluded applicants from counting hours spent on “religious instruction, worship, and any form of proselytizing” toward the full-time work requirement. The Department of Education has removed this exclusion effective July 1.

The PSLF Program’s eligibility requirements and application process are complex. Clergy members and lay employees who are interested in learning more about the PSLF Program and the recent change are encouraged to visit the Department of Education’s PSLF Program website.

The information above should not be considered legal or tax advice. Individuals, annual conferences, local churches, or other employers or parties should consult with their own counsel and other advisers.

Communication to the 2021 Retiree Class

We sent a participant e-blast communication on Tuesday, July 27 titled “Now that you’re retired,” providing newly retired participants with an overview of some things to think about regarding their financial outlook, Social Security/Medicare participation, and their overall well-being. The email was sent to 939 participants who had retired as of July 1, 2021.

Now Available: Wespath Benefits and Investments Q2 Video Webinar

The second-quarter Investment Insights webinar is now available on wespath.org! Watch as our investment team recaps last quarter’s investment activity and economic trends.

The webinar has been shortened to approximately 35 minutes and can be viewed in full, or in smaller segments.

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