99% Of People Seeking Student Loan Forgiveness Have Been Denied
According to CNN, congress got off more blocks than Mutumbo. Reportedly 99% of everyone who’s applied to a student loan forgiveness program has been rejected.
The Education Department denied 99% of requests for relief processed under the newly expanded Public Service Loan Forgiveness program. Only 661 applications were approved while 53,523 were denied during the first 12 months.
The program allows borrowers like teachers and social workers, working mainly in the public sector, to apply for debt cancellation after making 10 years worth of payments. It was established in 2007, but the first time anyone would have made enough payments to qualify was the fall of 2017, under the Trump administration.
Congress reportedly set aside $700 million to expand the program in 2018 to address the low number of people qualifying for forgiveness, but the new report shows that fix hasn’t had the desired results. After making 10 years of payments, some borrowers found out that they didn’t have the right kind of federal student loan, were in the wrong repayment plan, or worked for an employer that didn’t qualify for forgiveness.