The following guest post comes from YNPN Chicago member Melanie Hoekstra and originally appeared on YNPN Chicago's blog. We wanted to share this post as a follow up to guest post earlier in the year from blogger Heather Jarvis about newly released details on the documentation that nonprofit employees need to substantiate their eligibility for the student loan forgiveness program. Melanie does a great overview of how you make the "loan thing" work on a nonprofit salary.
You can also find more information on the public service loan forgiveness program by checking out the list resources Heather has curated.
Paying for Student Loans on a Nonprofit Salary
Can it be done? Can you eat more than ramen noodles for the next decade and still work at the non-profit job you love while paying back your hefty student loans? YES. Enter the College Cost Reduction and Access Act (CCRAA). Under the CCRAA, you can: (1) pay your federal loans at a much lower monthly amount under the Income-Based repayment plan, and (2) have those federal loans forgiven after 120 payments under the Public Service Loan Forgiveness (PSLF) program for people who work for 501(c)(3)s and government agencies (10 full-time years, not necessarily consecutively) . Seriously, this two-step process is an incredible option for anyone working in the non-profit world or for the government.
Lowering Your Monthly Loan Payments If you’re still in school (undergrad or graduate!), the first thing you’ll want to do is make sure that as many of your loans as possible are from the federal government. These are generally called “Direct Loans” and can cover most to all of what you need to go to school. It’s important to note that CCRAA does not apply to private loans, which will generally require you to pay them back at the terms agreed upon when you started (though there are usually some options for graduated repayment, etc.). Talk to your school’s financial aid department about ensuring that your loans are some form of Direct Loans to remain eligible for the program.
If you are about to start repayment, you need to do two things. First, consolidate all of your eligible loans into one single loan through the Department of Education’s Federal Direct Consolidation Loan. Doing so makes your loan payments much simpler to track, after their consolidated, at least, and it also allows some loans like Perkins that are not eligible for PSLF to be rolled into the consolidated loan and become eligible. Second, during consolidation, be sure to select the Income-Based Repayment plan. IMPORTANT: Do not select the Income-Contingent Repayment plan, as it does not qualify you for loan forgiveness. Income-Based Repayment (IBR) estimates your monthly repayment amount at 15% of your disposable income. You can calculate your payments here.
Qualifying for Public Service Loan Forgiveness Program To qualify for loan forgiveness, you must make 120 payments while you work full-time for a registered 501(c)(3), a government agency, or in a “public service” position, which includes public health and public education jobs, military, and legal aid positions. You don’t need to make the payments consecutively, so you could switch sectors and then come back, but be aware that this reduces the benefits of both programs. More specifics, along with lots of other details, can be found here and answers to frequently asked questions can be found here.
Other Noteworthy Items Are those who started working for a non-profit or in a public service job before this law took effect eligible? It depends on the state of your loans now. If you consolidated your federal loans, then you can switch to the IBR plan, which will almost definitely lower your monthly payments. Any payments you made (under any repayment plan) while working full-time at a public service job since October 1, 2007 will count toward PSFL.
It’s also important to know that even if you do not qualify for the Public Service Loan Forgiveness program but instead only have a relatively low-paying job in non-qualifying sector (e.g. private sector), you can still get your loans forgiven. It takes 25 years and you have to be on either Income-Based Repayment or Income-Contingent Repayment, but it can be done.
There’s a lot of information about the College Cost Reduction and Access Act out there, but many people don’t know about it – so tell your friends! And find out more information here and here.
Melanie Hoekstra is the Operations Manager at The Plant, a vertical farm and food-business incubator. She is a graduate of Chicago-Kent College of Law and the University of Michigan. She cooks, reads, bikes, and sees her friends whenever she can.
As many of you know from the emails going across this listserve, the report has gained considerable traction since its release in Fall 2011:
- In January, the Foundation Center did a podcast about the report with Trish and YNPNsfba Board Chair Amanda Pape Laneghan.
- Just a few days later, The Chronicle of Philanthropy hosted Trish and Jan Masaoka for an online conversation about employee morale where report drove much of the discussion.
- Idealist.org invited YNPN National to write a blog post about "Good in Theory."
In addition, some chapters and organizations are researching ways to conduct local versions of the national report. Others have integrated the report into their programming. Some have even hosted parties celebrating the report's release.
Help us keep all of this momentum going strong! Let us know what your chapter has done. Maybe your chapter's story will be featured by YNPN National!
Please complete the "Good in Theory" survey by Thursday, March 28. Please complete the survey even if your chapter has not yet done anything with the report. It will only take a few minutes and give National some valuable information about how the report has been used and how it can better support the chapters across the country.
We look forward to hearing from you and learning what your chapter has accomplished.
For the second time, YNPN was invited back to the White House for a tweet-chat with Jon Carson (@joncarson44), Director of Public Engagement at the White House to have a frank conversation about young people and the future of the nonprofit sector.
This post comes to us from student loan expert Heather Jarvis. YNPNers around the country have been relying on her eagle eye for advice and updates on the federal government's student loan forgiveness program (which many nonprofit employees qualify for). We are grateful for her latest blog post- info that many of us have been waiting for! You can also find more information on the public service loan forgiveness program by checking out the list resources Heather has curated.
3 New Documents Everyone in Government and Nonprofit Services Needs Right Now
The Department of Education today released the long awaited Employment Certification for Public Service Loan Forgiveness form! Woot!
Folks in government and 501(c)(3) nonprofit service* can finally get that warm and fuzzy feeling that will come from the government saying “yes” your employment qualifies and “yes” you made x number of payments that count towards forgiveness.
Why This Is Important
Student loan borrowers can earn Public Service Loan Forgiveness by making 120 of the right kind of payments, on the right kind of loans, while working in the right kind of job*. But you also have to PROVE that you met all the requirements of the program. That’s where the paperwork comes in.
Nothing about Public Service Loan Forgiveness is automatic. Not one thing. Student loan borrowers will need to jump through a whole lot of hoops to establish that they have earned the forgiveness. Flaming hoops probably. But student loan borrowers aren’t afraid of a little paperwork, right? We say Bring. It. On.
If you think you are working for a qualifying public service employer and you’re working toward Public Service Loan Forgiveness, YOU NEED THIS FORM. You love this form. This form is your BFF.
Run, don’t walk, and download these documents:
Instructions for Completing the Employment Certification for Public Service Loan Forgiveness form
Employment Certification for Public Service Loan Forgiveness form
Department of Education’s Letter to Borrowers about the process
Read it all. Fill out your part and take the documents to your work. Figure out who is authorized to sign for your employer and ask that person to fill out their part fully and carefully. Make sure everything is totally filled in and then submit the form to:
P.O. Box 69184
Harrisburg, PA 17106-9184
Or Fax to 717-720-1628
Do this every year and whenever you change jobs. Keep copies of your W-2s and paystubs, and whatever else you think documents your employment or supports your employer's eligibility. Keep this stuff until the end of time. Forever. And then keep it some more. I recommend the paranoid method of record keeping in this case.
For help with the form call FedLoan Servicing: 855-265-4038
More from the Department of Education: www.studentaid.ed.gov/publicservice
More details and opportunity to ask Heather during upcoming Free Public Service Loan Forgiveness Webinars.
*Note for all clergy, rabbis, priests, imams, preachers, pastors, ayatollahs, and others: New language included in these forms indicates the Department of Education is taking the position that an individual borrower’s employment does not qualify when the borrower is employed in a nonprofit organization and their job duties are related to religious instruction, worship services, or any form of proselytizing. Heather will post more analysis and information about this recent development ASAP.
Trish Tchume, director of Young Nonprofit Professionals Network (YNPN), National, and Amanda Pape Lenaghan, Co-chair of YNPN San Francisco Bay Area (YNPNsfba) and Deputy Director Bay Area at Taproot Foundation, were recently interviewed by the Foundation Center for the Philanthropy Front and Center blog.
They discussed the recent YNPN report Good in Theory Problems in Practice: Young professionals’ views on popular leadership development strategies. The interview provides a great overview of the findings, what was surprising in the findings, and what the findings are saying about the future leadership of the nonprofit sector.
- Listen now! Hear the podcast through the GrantSpace multimedia archive.
For several months now YNPNdc has been working with the White House Office of Public Engagement to create a dialogue between White House leaders and young nonprofit professionals. This past week YNPNdc Board Chair Carlyn Madden and YNPNdc Leadership Council member Zach Dulli were included in a panel of young leaders asked to discuss what issues they would like to see included in tonights State of the Union address. Part of what came out of that meeting was a request for the White House to provide more outreach and follow up to young professionals.
YNPNdc will be tweeting live from the White House tonight, during and after the President's speech. The White House has asked us to encourage all YNPN chapters across the country to participate in this event as well. During the speech you can engage with YNPNdc through their Twitter account @YNPNdc and with the White House via @WhiteHouse & @JonCarson44. Immediately following the speech, pose your questions to a live panel of White House senior advisers by using the hashtag #SOTU. Be sure to include @ynpndc in your message. You can also post questions via the White House’s Facebook page. For more information or to view an enhanced version of the State of the Union address and the live streamed follow up Q&A please visit WhiteHouse.gov
The White House is excited about the work YNPN is doing and this is a great opportunity for chapters across the country to engage on a national stage. We encourage everyone to participate in tonight's event.
Links and Hashtags:
The Chronicle of Philanthropy recently named the Young Nonprofit Professionals Network an "Nonprofit to Watch in 2012". Citing the hiring of our first national director Trish Tchume, the Chronicle includes YNPN in a list of organizations poised to "grab the spotlight because they are charting a new course or because they have appointed new leaders."
We are certainly excited for the upcoming year as YNPN celebrates its fifteenth anniversary!
Excerpt from the article:
A new face for young nonprofit employees
The 15-year-old Young Nonprofit Professionals Network has hired its first director and full-time employee—Trish Tchume, formerly of the Building Movement Project, a nonprofit that works to strengthen social-change groups.
Read more at Philanthropy.com
This post comes to us from the Director of YNPN National, Trish Tchume.
A few years ago I became really fascinated with the AIGA Symbol Signs. I’m not sure what first caught my interest about them but it probably had something to do with their connection to other things I tend to be drawn to – shared meaning, simple ways of stating the complex, or pretty pictures :).
I love the idea that, because of simple human ingenuity, a Tagalog-only speaker who falls ill as she makes her way through the Denver airport would know from the white cross on a dark background in front of her that help is close by.
I’ve been involved with YNPN for several years now but my first couple of months as director of YNPN – especially my time on the road – has crystallized for me how important it is for even the most savvy among us to have clear, identifiable ways of finding and accessing what we need. It’s clear to me that YNPN has grown to be that for many young nonprofit professionals as well as those seeking to become young nonprofit professionals. Here’s how I know…
At this point in my directorship, I’ve spent time with chapters in Phoenix, Chicago, DC, San Francisco (twice), and at home in NYC. In each of these places I’ve met YNPNers who’ve shared more or less the same story. It goes something like this:
I was working for [insert small nonprofit] in [insert city/town/hamlet] and I didn’t really know anybody else in the sector there. So I heard about YNPN and I started going to events. I moved to [insert city/town/hamlet where we are having current conversation] a few months ago to work for [insert new small nonprofit] and I didn’t really know anyone in the sector here – but I knew about YNPN! So I started coming to YNPN events here and now I have a community.
I’ve probably had this conversation 6 times in the past 3 months and, as dorky as it sounds, I still get chills. I love, love, love that this beautiful little idea that a few young nonprofiteers dreamed up around a CompassPoint conference table 15 years ago – this little idea that so many of you have grabbed onto and nurtured in your own communities – has become the symbol sign for “inroad to my local nonprofit community” for tens of thousands of young people who want to commit themselves to change wherever they land.
As you all may have noticed over the past several years (and especially over the last 12 months) the world is finally waking up to the notion that the world’s most pressing problems are too widespread, too complex to be solved by any one person, party, organization or nation. At the same time the world is waking up to the fact that the most vibrant ideas for how to build a better world also don’t live in any one person or company or organization or government - the best ideas live amongst the people. And those ideas emerge when you create a framework and then allow people to bring their best selves to it. We’ve seen that everywhere from campaign house parties to the iPhone app store to Wikipedia to the Occupy Everywhere movement. And we certainly see it in the work you do as chapters of YNPN.
That alone would get me out of bed every morning to do what I can to strengthen this national network, but the conversations that YNPN has been invited to be a part of over the past several months have reminded me that, as a network, we have an even bigger role to play.
For example, on November 15, YNPN was invited to be one of the 200 government, nonprofit and philanthropic institutions to participate in the White House Forum on Nonprofit Leadership. YNPN was fortunate enough to be at the table during the White House forum to think through what these different mechanisms might look like. There were a number of recommendations that emerged from the groups which will become the framework for the Initiative for Nonprofit Talent and Leadership (click here to learn more about how YOU can become involved with this initiative!) Time and again however the refrain arose: “We need on-ramps and training opportunities for the diverse array of professional emerging in the sector. We need opportunities for them to network and build connections in the field.” It drove home for me yet again what a vital role YNPN is already playing in advancing the sector and how well-positioned we are to play this vital role for an even greater number and more diverse set of change agents.
But how do we take our work to scale while maintaining the grassroots, people-powered ethos of the network that attracted so many of us? We have some of the answers – stronger technological infrastructure, a more robust communications strategy, clearer channels between national and amongst the chapters so that resources can be shared more readily…But what else? How do we make sure that the best ideas from all of you are harvested? How do we make sure that YNPN becomes the symbol sign for an even broader, more diverse array of young people looking to make change via the social sector?
On January 25th we’ll be hosting a webinar where we’ll begin to lay out the plan for gathering answers to these questions over the coming year (more info on the webinar to come!) but we hope you’ll share your questions and ideas with us in the meantime via the comments below, Twitter (hashtag #ynpn) or by emailing me directly at email@example.com.
I couldn’t be more excited for what we’ll build together.
Young Nonprofit Professionals Network recently surveyed over 1,100 emerging nonprofit leaders across the country. Conducted in Spring 2011, YNPN’s National Voice Survey tested several interventions targeting leadership development in the nonprofit sector. The full report was launched in the Fall of 2011 at Independent Sector’s NGEN conference.
For additional information about Good in Theory, Problems in Practice, please contact: Trish Tchume, Director, Young Nonprofit Professionals Network firstname.lastname@example.org; (917) 300.YNPN
YNPN's 2007 Report: Stepping up or Stepping Out
In 2007, YNPN surveyed its then 10,000 members around the country to find out whether young potential leaders were leaving or remaining in their jobs, what preparations and support they needed to take on greater leadership roles, and how to best develop the next generation of leaders to replace the baby boomers. Some 1,657 people completed the survey. Read the full report.
It’s not news that the job of nonprofit Executive Director is challenging and demanding. Often filling roles that would be several staff positions if the funding allowed, Executive Directors are expected to master a broad set of skills in order to effectively lead their organization and ensure its sustainability. However, we are learning that in order to meet those demands an increasing number of Executive Directors are employing strategies to share leadership within their organization in order to distribute responsibility and to develop staff bench strength.
In Daring to Lead 2011 Brief 2: Inside the Executive Director Job, CompassPoint and the Meyer Foundation highlight this growing trend toward shared leadership in the nonprofit sector. A collaborative approach to leading an organization can range from engaging staff in the responsibility of decision-making to replacing the singular executive role with several executive-level leaders. Defined broadly, the vast majority of the respondents in the Daring to Lead study described their leadership style as shared or inclusive of others within the organization. As a result, the report recommends executives, boards, and funders consider support for operationalizing shared leadership within the sector.
These findings are supported by YNPN’s 2011 National Voice Initiative, which surveyed over 1,100 emerging nonprofit leaders across the country. Conducted in Spring 2011 with a full report release expected in October 2011, YNPN’s National Voice Survey tested several interventions targeting leadership development in the nonprofit sector. The findings demonstrate that there a growing number of nonprofit organizations experiencing positive change through shared leadership. YNPN asked young leaders their perspective on moving away from traditional models of the Executive Director role by decentralizing responsibility and flattening the hierarchy. Although only a small percentage of respondents had experienced such changes in their organization, a significant majority of those respondents reported the changes were effective in building more sustainable and collaborative organizations. This positive response was significantly higher than any other intervention tested in the survey.
The results of the Daring to Lead and YNPN’s National Voice Initiative point us in the direction of an inclusive approach to organizational leadership, one that does not depend on one leader or structure but rather a team of leaders and a nimble organization ready to seize opportunities and address challenges. This approach not only relieves some of the burden placed on Executive Directors to be many things to many people, but also creates opportunities for young leaders in the organization to emerge. One of the hallmarks of the younger generation is a tendency toward collaboration, and this inclination will serve the nonprofit sector well as these young professionals take on Executive roles. Regardless of whether the structure is overtly nontraditional or simply inclusive of staff engagement, it is likely the nonprofits of the future will be employing this community-minded approach. The inclusivity that has made this sector so appealing to young people will be applied to our internal organizational models, resulting in a built-in development structure that values the talents and strengths of the team.
This post comes to us from Lydia McCoy, Danielle Holly, and Dan Dobin- YNPN National board members and members of YNPN National's National Voice Committee, the team preparing for the upcoming release of a report on leadership. Look for YNPN’s full report on emerging leadership and tested leadership strategies this November, and visit http://ynpn.org for more about engaging the next generation of nonprofit leadership.