Congress created the expansion program last year in response to a growing outcry. Thousands of borrowers — nurses, teachers and other public servants — complained that the requirements for the original program were so rigid and poorly communicated that lawmakers needed to step in. But, documents show, even this expansion of the Public Service Loan Forgiveness (PSLF) program isn’t working.
Ninety-nine percent of loan-forgiveness requests under that new Temporary Expanded Public Service Loan Forgiveness (TEPSLF) were rejected during the program’s first year, from May 2018 to May 2019. According to the review out Thursday, conducted by the Government Accountability Office, the U.S. Department of Education processed roughly 54,000 requests and approved just 661. It spent only $27 million of the $700 million Congress set aside for the expansion.
“We were disheartened,” says Melissa Emrey-Arras, who led the GAO’s review. “I think we were discouraged. I mean, the hope is that you have this temporary expanded process, and you want it to help a lot of people. And you don’t want borrowers to be confused about the eligibility criteria and to face a high denial rate. And yet, that’s what we found.”
In a statement to NPR, Education Department press secretary Angela Morabito says, “The Department has taken steps to help borrowers better understand the complex eligibility requirements, application process, benefits, and other information related to the PSLF and TEPSLF programs. The Department agrees with the GAO’s recommendations about how to improve the programs; a number of our efforts are already underway.”
Jesus: Hey, Dad? God: Yes, Son? Jesus: Western civilization followed me home. Can I keep it? God: Certainly not! And put it down this minute--you don't know where it's been! Tom Robbins in Another Roadside Attraction