99% Government Student Loan Forgiveness Applications Rejected
99% OF APPLICANTS WERE REJECTED FROM GOVERNMENT STUDENT LOAN FORGIVENESS
(CNN) – A federal loan forgiveness program has turned out to be not so forgiving.
The government accountability office released a report Thursday saying 99% of requests for federal student loan forgiveness were denied.
Of the more than 53,000 applications, 661 were approved.
Congress set aside $700 million in 2018 to expand the program.
The move was in response to the low number of people qualifying for forgiveness.
The program is meant to help borrowers working in the public sector, like teachers and social workers.
However it requires a borrower to have first applied and been rejected to the original program.
This new report says about 71% of those who were rejected by the fix had not done so, creating a confusing process for borrowers.