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Extending Public Service Loan Forgiveness to Early Childhood Educators

By Troy Hunter, Senior Policy Director, Groundwork Ohio Follow Troy on Twitter and LinkedIn


The U.S. Department of Education is considering extending Public Service Loan Forgiveness (PSLF) to early childhood educators. This extension is not just a matter of financial relief; it's an acknowledgment of the crucial role these educators play in our communities and the systemic challenges they face. 



The Financial Realities for Early Childhood Educators 


In Ohio, the average child care worker earns just $15 an hour, while the average cost of attendance at an in-state public four-year institution is over $27,000 per year. This disparity means that many early childhood educators struggle to repay student loans or pursue further education. The national student loan debt crisis exacerbates this issue, with Ohio alone carrying a total of $62.3 billion in student loan debts, ranking seventh in the nation. The financial burden is particularly heavy for early childhood educators, who often earn low wages and lack professional recognition. 



The Case for Loan Forgiveness 


Public Service Loan Forgiveness could be a game-changer for early childhood educators. Since its inception in 2007, PSLF has provided relief to borrowers working in public service by forgiving the remaining balance on federal student loans after 120 qualifying payments. However, many early childhood educators have been excluded from PSLF due to their employers' tax status, leaving a significant portion of this workforce without access to financial relief. This exclusion disproportionately affects women, particularly women of color and immigrants, who make up a large percentage of the early childhood education workforce. 


The proposed expansion of PSLF to include all early childhood educators, regardless of their employer's tax status, could provide much-needed relief. This includes those working in home-based and center-based settings who impact the development and education of young children. 



The Path Forward 


More than 900,000 borrowers have benefited, totaling $68 billion in forgiveness through PSLF. However, extending these benefits to early childhood educators, regardless of their setting, is an essential next step. The Department of Education has sought input from stakeholders to better understand how to implement this expansion effectively. Groundwork Ohio submitted public comment that you can read here

 

We recognize that investing in early childhood educators is an investment in our future. By easing the financial burdens they face, we not only support these educators but also enhance the quality and accessibility of early childhood education. This benefits families, employers, and the broader economy, as more parents can enter the workforce and contribute to economic growth. 

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