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Silicon Valley tech giant PayPal on Friday said it was committing $25 million to a program offering interest-free cash advances of up to $500 to federal workers impacted by the partial government shutdown, now in a record-breaking fourth week.
"No matter where you stand on the issues, the fact is that 800,000 of our fellow Americans suddenly find themselves without a paycheck," PayPal CEO Dan Schulman said in a blog post, which included a link to 211.org, which lists resources for government workers trying to get by without wages.
Schulman also referenced other companies pitching in to help, including Wells Fargo, which is waiving fees for customers who have direct deposit from the federal government, and ATT, which is offering flexible payment options for impacted customers looking to keep their cellphone, TV and internet services running.
"We think that the private sector and the public sector need to come together to think about creative solutions, to be able to help," Schulman said in an accompanying video. "In so many ways the public sector helps all of us as citizens."
Other companies have offered free meals and other help in recent days as hundreds of thousands of government workers cope without a paycheck. Among them: Military financial services provider USAA, which on Wednesday said it would offer interest-free loans to Coast Guard workers who aren't receiving paychecks through a $15 million program it started.
that began last month, and is now in its 28th day, with President Donald Trump demanding $5.7 billion for a border wall he promised in his election campaign, and the Democratic-led House refusing to yield.
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April 1, 2017; New York Times and Forbes
Four former students have brought suit in federal court against the U.S. Department of Education seeking to reinstate their eligibility under the federal Student Loan Forgiveness Program. The former students claim that FedLoan Servicing, which administers the program for the Education Department, issued approval letters that were then rescinded with little or no opportunity to appeal the decision. The Education Department said in a court filing that borrowers should not necessarily rely on the approval letters they receive from FedLoan because they are not binding and may be rescinded at any time.
The program, started in 2007, offered forgiveness for student loan obligations to students with government (not private) student loans who work in public service for 10 years and maintain their student loan payments during that time. About 550,000 students have signed up for the program, which offers forgiveness for borrowers who choose to work for government agencies, public schools, public hospitals, and 501(c)(3) and some other nonprofit organizations. The federal Consumer Financial Protection Bureau estimates that 25 percent of the U.S. workforce is employed in public service and could be eligible to participate in “some form of student loan forgiveness, including the Public Service Loan Forgiveness program.”
Lawsuit plaintiff Jamie Rudert applied for and received confirmation in 2012 that his work as an attorney for the Vietnam Veterans of America (VVA) qualified him for the program. However, when he sent in the routine annual recertification in 2016, he was told by FedLoan that not only was it denied, but that none of his previous work for the nonprofit would be recognized as qualifying. FedLoan told him that his initial application was approved in error, but there was no explanation of what the error may have been or how it may have occurred.
A review of VVA’s GuideStar page and Form 990 shows that VVA isn’t a 501(c)(3) public charity, but a 501(c)(19) veterans organization. Technically, employment by a nonprofit that isn’t a 501(c)(3) may still fit under the program if the organization provides “qualifying public services,” such as law enforcement, emergency management, and public service for the elderly or individuals with disabilities.
The timing of the lawsuit is especially important because, though the program was instituted in 2007, decisions on the first student loans to actually be forgiven won’t happen until October. In fact, the paperwork design hasn’t been completed for the forms a borrower would use to actually apply for loan forgiveness at the end of his or her 10-year period in the program.
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