Employees of not-for-profit organizations and government employees believed that they would have their student loans forgiven after ten years of timely payments, are now finding out they don’t qualify under the program’s requirements.
The Department of Education has released data that shows how ineffective the student loan forgiveness program has been.
This last year, only ninety-six people have qualified, the first year the program made student loan borrowers eligible since it was signed into law in 2007.
So far, 30,000 borrowers have applied for the program with only one percent qualifying, yet, the Consumer Financial Protection agency believed 25% of borrowers would qualify, but many aren’t because of technicalities.
Requirements are as follows per CNBC:
- Your loans must be federal direct loans.
- Your employer must be a government organization at any level, a 501(c)(3) not-for-profit organization or some other type of not-for-profit organization that provides public service. (MPR, for example)
- By the end, you need to have made 120 qualifying, on-time payments in an income-driven repayment plan or the standard repayment plan.
Attorney Generals from nineteen states plus the District of Columbia sued U.S. Secretary of Education Betsy DeVos and the U.S. Department of Education for failing to implement a borrower protection rule.
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