PhD/PsyD PSLF Article on MarketWatch

[StellaB]

This government loan forgiveness program has rejected 99% of borrowers so far
This program seems to be riddled with problems, and it doesn't even address the known issues with FedLoan being incapable of accurately tracking payments or eligibility. This has the makings of a serious scandal with an incredible amount of money involved.

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[psych.meout]

This government loan forgiveness program has rejected 99% of borrowers so far
This program seems to be riddled with problems, and it doesn't even address the known issues with FedLoan being incapable of accurately tracking payments or eligibility. This has the makings of a serious scandal with an incredible amount of money involved.

There's no way the program would be solvent based on the number applicants and the levels of debt involved. The only way for it to actually work (assuming that you want it to) is to have relatively restrictive requirements and reject large numbers of applicants.

 

[Pragma]

Sounds like a lot of people didn’t read the fine print or determine if their job, repayment plan, paid ahead status, etc were eligible. I am sure a good number just applied to see if they could get it. Apparently 28% submitted incomplete applications.

 

[StellaB]

Oh it’s absolutely not going to be solvent, especially since grad loans were no longer subsidized after 2012, causing interest to accrue during school. But to Pragma’s point - I am sure some people didn’t understand or just tried applying (though the sheer numbers of rejections vs acceptances should shock anybody). The other part of this story is covered in a number of articles out about FedLoan, a private company the government has relied on for tracking PSLF, and they have done a scandalously incompetent job: Watchdog agency blasts government contractor for mishandling student loan forgiveness program
CFPB Spotlights Borrower Complaints About Student Loan Servicers Mishandling Public Service Loan Forgiveness Program | Consumer Financial Protection Bureau
Mass. AG Sues Loan Servicer for Mishandling Loan Forgiveness Program | Inside Higher Ed

 

[Pragma]

I think the most common thing I’ve heard people make the mistake of thinking is that public service = repayment. I talked to a psychologist that worked for 8 years in public service thinking they had PSLF coming, but never read the details and never switched to a qualifying payment plan (income based). So none of their payments counted. That’s on the psychologist if you ask me. Nowadays you can submit a form as often as you want to see how many payments qualify. Also, if someone was getting forgiveness this past year, they had to have been continuously employed in public service for that entire 10 years. Any gaps would have delayed eligibility.

 

[LadyHalcyon]

I made a post about this. There is one guy who had his loans forgiven in May of this year

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[Pragma]

I made a post about this. There is one guy who had his loans forgiven in May of this year

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Sounds like closer to 100 and 5.5 million

 

[LadyHalcyon]

Sounds like closer to 100 and 5.5 million

Oh I'm not saying he is the only guy but the article was interesting. He basically had to constantly read the regulations and even had to start recording his phone conversations so they wouldn't screw him over

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[Pragma]

How to make sure you get the government to cancel your student debt