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USEducation Department rejected 99 percent of applicants for student loan forgiveness program

23:30  08 september  2019
23:30  08 september  2019 Source:   foxnews.com

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The government made a simple promise to student loan borrowers - work in public service for 10 years, make valid loan payments for 10 years, and the Education Department would forgive the leftover balance on the loan . The program is called Public Service Loan Forgiveness .

The U.S. Education Department rejected 99 percent of applicants in the first 12 months of a revamped student loan forgiveness program , according to government watchdog report released Thursday. Ironically, the program had been expanded last year to help students who were already

The U.S. Department of Education accepted just 1 percent of applicants in the first year of a revamped student loan forgiveness program, according to a government watchdog report.

Education Department rejected 99 percent of applicants for student loan forgiveness program© ASSOCIATED PRESS FILE - In this Sept. 17, 2018, file photo, Education Secretary Betsy DeVos speaks during a student town hall at the National Constitution Center in Philadelphia. One of the nation's largest teachers' unions sued the U.S. Education Department on Thursday, July 11, 2019, over a federal program that promises to forgive student loans for public workers but has been beset by problems. (AP Photo/Matt Rourke, File)

The Temporary Expanded Public Service Loan Forgiveness program (TEPSLF) was funded by Congress in 2018 to help students who were having trouble qualifying for loan forgiveness.

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Student Loan Forgiveness : Debt Statistics. According to Make Lemonade, there are more than 44 million borrowers who collectively owe .5 trillion in student loans . Remember that more than 9,000 applicants for public service loan forgiveness submitted an incomplete Employer Certification Form.

The Education Department advised these rejected applications to submit an updated Employment Certification form annually. The Public Service Loan Forgiveness Program is a federal program that forgives federal student loans for borrowers who are employed full-time (more than 30 hours

It expanded upon the Public Service Loan Forgiveness program (PSLF), which was established in 2007 to forgive federal student loans for those who go to school and work in public service for at least 10 years. Borrowers in the program are expected to make 120 payments via specific repayment plans, among other requirements, according to a report by the Government Accountability Office.

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The report comes after the American Federation of Teachers sued Education Secretary Betsy DeVos over the Education Department's handling of its student loan forgiveness program in July.

Federal student loan forgiveness program rejects almost everyone, again

Federal student loan forgiveness program rejects almost everyone, again WASHINGTON - Americans who spend at least a decade in public service jobs and faithfully make their federal student loan payments shouldn't owe any more. That's the idea behind a student debt forgiveness program the Education Department launched under President George W. Bush. The first batch of teachers, nurses, military personnel and other public servants got to start applying for forgiveness two years ago, and the department - led by President Trump's appointee Betsy DeVos - rejected nearly 99% of them. The department said more than half of them were denied for not having 10 years' worth of qualifying payments.

99 % of borrowers applying for expanded loan forgiveness program have been rejected . First, some background. PSLF is a program that, in theory, allows borrowers to get their federal student loans forgiven in as soon as ten years if they work for a public service employer, such as a nonprofit

The U.S. Department of Education accepted just 1 percent of applicants in the first year of a revamped student loan forgiveness program , according It expanded upon the Public Service Loan Forgiveness program (PSLF), which was established in 2007 to forgive federal student loans for

Congress had set aside $700 million in 2018 to temporarily expand the PSLF program with the goal to forgive the loans of students who didn't initially qualify. Just $27 million of the amount has been used.

There were 54,184 applications completed between May 2018 and May 2019 for the TEPSLF program and only 661 were approved. Steps were "not clear to borrowers," with many not aware they had to apply for the original PSLF program, even if they knew they didn't qualify, according to the report.

A bulk of all applications -- 71 percent-- were considered ineligible for the program because they hadn't submitted a PSLF application, with the report labeling the process as "confusing for borrowers."

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"As a result, some eligible borrowers may miss the opportunity to have their loans forgiven," the report said.

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There’s Supposed to Be a Student Loan Forgiveness Program for Public Servants. So Far, It’s Rejected Almost Every Applicant . Last week, the Department of Education reported that it had rejected more than 99 percent of all applications submitted through the end of June.

The Public Service Loan Forgiveness program , which was passed by Congress in 2007, was designed to allow student loan But relatively few borrowers have been able to obtain the benefit in recent years, as the Education Department has rejected roughly 99 percent of applications .

Three percent of borrowers were denied because they had yet to make 120 payments, while 4 percent were denied because they had no qualifying federal loans.

What makes it difficult for borrowers is that some of the Department of Education's key resources for students didn't include information on the expanded program and they don't require federal loan services to include TEPSLF information on their websites, according to the report. A Department of Education official did say they will have a new online portal this fall that could include a simplified application process, "if they had sufficient resources and time."

Right now they don't have any specific plans to do so.

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Donald Trump recently signed an executive order on Aug. 21., forgiving all student loan debt for any permanently disabled U.S. military veteran.

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