When PSLF Isn’t on the Table: Why Your Top Talent May Be Walking Out the Door

In today’s hyper-competitive healthcare labor market, every benefit counts. But one benefit in particular is rising to the top of employee priority lists—Public Service Loan Forgiveness (PSLF). And when it’s missing? You could be unintentionally pushing your most valuable healthcare workers into the arms of your competitors.

The Rising Stakes of Healthcare Retention

Healthcare employers are under immense pressure to recruit and retain qualified professionals. With nursing shortages, burnout, and a growing aging population, the demand for experienced providers has never been higher. Add in the fact that the average medical school graduate carries over $200,000 in student debt (AAMC, 2024), and the financial stakes become even clearer.

According to PeopleJoy’s recent white paper, "The Financial ROI of Public Service Loan Forgiveness," a startling trend emerged:

Employees who left jobs due to lack of PSLF support were 95% more likely to prioritize PSLF in their next employment decision.

Let that sink in. Nearly every employee who left due to the absence of PSLF intentionally sought it out in their next job.

Why PSLF Isn’t Just a “Nice-to-Have” Anymore

Many HR leaders still view PSLF as a side benefit. But this outdated thinking could be costing organizations millions in turnover and recruitment.

From our research:

• 65% of professionals who left PSLF-eligible roles regretted doing so.
  
• 81% stated that PSLF support would have influenced them to stay longer.
  
• 78% of employees enrolled in PSLF reported lower financial stress and higher job satisfaction.
  

This isn’t just about dollars and cents—it’s about the mental and emotional toll of student debt. And your employees are noticing who supports them—and who doesn’t.

Meanwhile, competitors who do promote PSLF are reaping the rewards:

• 30% lower vacancy rates
  
• 22% higher 5-year employee retention
  
• Stronger recruitment pipelines in underserved areas
  

The Risk of Doing Nothing

If you’re not actively supporting PSLF, here’s what could happen:

• You lose mid-career talent to travel nursing agencies or private institutions.
  
• Staff morale dips as financial stress climbs—leading to burnout and more exits.
  
• You get left behind as nonprofit competitors position PSLF as a core part of their recruitment strategy.
  

The proof is in the patterns. High student loan debt directly correlates with PSLF demand—and healthcare professionals are making job choices based on this benefit more than ever before.

And here's the kicker: even roles with lower salaries can win over candidates if PSLF is on the table.

“I could earn $10K more at another hospital,” one survey respondent said, “but I stayed because PSLF gives me peace of mind.”

Stop Losing Talent—Start Winning Loyalty

Here’s how to turn PSLF into your secret weapon:

1. Educate your employees on their eligibility for PSLF.
   
2. Partner with trusted experts (like PeopleJoy) to simplify enrollment.
   
3. Promote PSLF in your job postings, onboarding materials, and HR campaigns.
   

📢 Your competitors are already doing it. And the next wave of top-tier nurses, therapists, and techs? They’re watching closely.

📞 Ready to Turn Retention Risk Into Strategic Advantage?

Let PeopleJoy help you build a PSLF-forward culture that keeps your healthcare heroes where they belong—with you.

📄 Want to dive deeper into the data? Download our white paper to learn how PSLF can significantly reduce turnover and increase retention in your healthcare organization.

📍PeopleJoy | (833) 230-6454
🌐 www.peoplejoy.com