Education Department rejects nearly all applicants for a student loan forgiveness program

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Education Department rejects nearly all applicants for a student loan forgiveness program
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Tens of thousands of public servants have applied to have their federal student loans forgiven through a temporary program run by the U.S. Education Department. Fewer than 300 have had success.

The Education Department, led by Betsy DeVos, created eligibility criteria that are far more rigid than Congress envisioned, Senate Democrats say.

It has been about a year since the Education Department launched the temporary expansion of the Public Service Loan Forgiveness program, with $700 million from Congress to spend over two years. The goal was to give public servants enrolled in the wrong repayment plan another shot at having the balance of their debt erased after 10 years of on-time payments.

Others were turned away for having the wrong type of federal loan — those originated by private lenders through the now-defunct Federal Family Education Loan Program. Some had not made enough on-time payments or had not had at least 10 years of full-time employment certified by a qualifying employer, according to the department.

“We’re talking about thousands of people who have given a decade of service to our country, and the Education Department is leaving them out to dry,” Kaine said Tuesday. The Education Department pushed back against accusations of poor communication with borrowers. Rejection letters contain a list of possible reasons for denial, as does an agency web page about the temporary expansion initiative, according to the department. The agency said it has turned to social media, hosted a webinar and sent targeted emails to public servants to raise awareness of the program.

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