PSLF Program Eliminated $51 Billion In Student Debt For Public & NPO
As reported by Philanthropy.com, the Public Service Loan Forgiveness (PSLF) program, initiated in 2007, was designed to alleviate student debts for those dedicating a decade to nonprofits or government roles. However, the program was largely unknown and challenging to secure until recent rule changes and promotion. The Biden administration’s reforms in October 2021 breathed new life into the program, erasing an astounding $51 billion in student debt for over 700,000 public service workers. Yet, only about 15% of the 9 million eligible workers have applied. Despite earlier bureaucratic challenges and a high rejection rate, recent changes like loan consolidation and credit for past payments have transformed the lives of many by freeing them from significant student debt. As the cost of higher education skyrockets, nonprofit organizations should be actively promoting this program both to its employees as well as future employees.
A new nonprofit called Voltage Park, funded by cryptocurrency billionaire Jed McCaleb, has purchased $500 million worth of advanced AI chips from Nvidia. Voltage Park plans to set up AI computing clusters in multiple data centers and lease capacity to companies for artificial intelligence projects. This comes as demand for AI hardware has surged following the release of chatbot ChatGPT, with chip shortages plaguing businesses. By providing low-cost access to powerful Nvidia H100 chips, Voltage Park aims to make AI computing more accessible. The tax-exempt nonprofit is a subsidiary of McCaleb’s Navigation Fund, meaning any profits will be donated to the philanthropic fund.
The former head of a St. Louis nonprofit has been charged with fraudulently spending $20 million in federal child nutrition funds on luxury homes and goods. Connie Bobo of New Heights Community Resource Center allegedly falsified records to net $11 million in bogus meal reimbursements. If convicted on the wire fraud, identity theft and obstruction charges, Bobo faces up to 22 years in prison and forfeiture of illicit purchases. The indictment follows reporting on questionable practices by Missouri nonprofits administering pandemic aid, as authorities crack down on abuse of the loosened oversight.
The Nature Conservancy is now investing part of its $3 billion endowment directly into climate tech startups, leveraging its scientific expertise to support companies like Overstory and Yard Stick. The nonprofit sees an opportunity to back high-impact startups aligned with its conservation mission that also have potential for strong financial returns. Direct investing represents a shift beyond TNC’s past practice of relying on outside managers and index funds for its endowment. The approach shows how nonprofits with sizable endowments could strategically deploy capital to advance their mission as well as financial goals.