A great many of us are laboring under the weight of some serious student loan debts. Loan forgiveness programs offer some of us hope of having our loans forgiven by the government, but many are difficult to get into. This particular program rejects 99% of all the people who apply for it.
The Public Service Loan Forgiveness program
The Public Service Loan Forgiveness program was launched in 2007 as a way to help some borrowers essentially “work off” their student loan debt. The few people that are accepted into the program must work in certain public service positions and have their federal student loan debt cleared after only ten years of payments.
So far, roughly 100 borrowers have had a total of just over $5.5 million in debt forgiven.
99% rejection rate
Organizers of the program are concerned with the fact that only 1% of the almost 30,000 applicants to the program thus far have been accepted. They understand that many people could benefit from this program and some people may have even planned their futures around it.
Experts predict that the number of applicants will rise dramatically, but if 99% of them are still rejected then the program isn’t doing all it can to help. More than 70% of the applicants failed to meet at least one of the program’s confusing and strict eligibility requirements.
Experts admit that the eligibility requirements for the Public Service Loan Forgiveness program are hard to understand. Those few people who have had their debts cleared under this program already had to have applied for it nearly as soon as the program was created and have worked in public service positions for a decade straight.
Most people who have qualified for the program have large debts indicative of graduate degrees and are often knowledgeable borrowers who believe they are following the program’s requirements. However, they often fail to miss some detail and are rejected from the program.