Federal Public Service Loan Forgiveness Program Still Forgives Nearly Nobody

By |3월 13th, 2020|

Federal Public Service Loan Forgiveness Program Still Forgives Nearly Nobody

Final October, NPQ covered the general public Service Loan Forgiveness (PSLF) system and noted compared to initial 19,321 applications submitted for loan forgiveness, a grand total of 55 passed muster. Those figures arrived on the scene a year ago from A federal government Accountability workplace (GAO) report and had been predicated on demands submitted at the time of April 2018.

Relating to Michelle Hackman associated with Wall Street Journal, information is available nowadays through March 2019 in addition to true figures are…not definitely better.

As Hackman writes, “More than 73,000 men and women have sent applications for financial obligation forgiveness at the time of March 31 for this 12 months, in accordance with Education Department data, but simply 864 have experienced their loans erased. ”

As the probability of getting loan forgiveness approved have actually quadrupled—from 0.3 percent to 1.2 percent—it’s no real surprise one other 98.8 per cent are none too happy.

Back 2016, articles in NPQ by Nancy Berlin and peers at CalNonprofits extolled the benefits for the PSLF system:

The government provides a system that produces residing in the general public sector easier: Public Service Loan Forgiveness. PSLF eliminates your financial troubles after ten years of re re re payments. Shockingly few individuals find out about this system (look at chart below) however it may bring life-changing credit card debt relief to numerous of nonprofit employees—and it is additionally an excellent recruiting device for nonprofit professional directors and HR managers.

The PSLF is a federal program from the Department of Education that helps nonprofit staff with student debt stay in the sector by forgiving the balance of their student loans after 10 years of payments in a nutshell. […]