Public Service Loan Forgiveness Fail
20,521 applications rejected as ineligible. 96 borrowers approved. Those are the early results for the Public Service Loan Forgiveness program. PSLF promised student borrowers with federal Direct Loans who worked in qualifying public service jobs that they would have their loan balances discharged after 10 years of income-based repayment. The first cohort of PSLF borrowers applied beginning in the Fall of 2017, so these results reflect the first year of borrower attempts to receive the benefits they were promised. The three eligibility requirements were to work in a qualifying public service job, make all income-based payments for 10 years, and have a federal Direct loan. The Education Department's report does not break down the rejections by failed eligiblity criteria. It has been widely reported that what U.S. Ed. considers a "public service" job has been a moving target, and servicers have misled borrowers about the program, but that surely cannot explain these dismal results. Perhaps some Congressional oversight is in order.