One of the Nation's Largest Teachers' Unions, American Federation of Teachers (AFT), Sued the U.S. Education Department and the, Education Secretary Betsy DeVos, on July 11th, 2019, over a Federal Program that Promises to Forgive Student Loans for Public Workers but has been beset by Problems.
The Temporary Expanded Public Service Loan Forgiveness program (TEPSLF) was Funded by Congress in 2018, setting set aside $700 Million, to help Students who were having Trouble Qualifying for Loan Forgiveness. Just $27 Million of the amount has been used.
It expanded upon the Public Service Loan Forgiveness program (PSLF), which was established in 2007 to forgive Federal Student Loans for those who go to School and Work in Public Service for at least 10 years.
Borrowers in the Program are expected to make 120 Payments via Specific Repayment Plans, among other Requirements, according to a Report by the Government Accountability Office (GAO).
There were 54,184 Applications completed between May 2018 and May 2019 for the TEPSLF program and only 661 were Approved. Steps were "not clear to borrowers," with many Not Aware they had to Apply for the Original PSLF program, even if they knew they didn't Qualify, according to the Report.
A Bulk of All Applications, 71%, were considered Ineligible for the Program because they hadn't Submitted a PSLF Application, with the Report Labeling the Process as "Confusing for Borrowers."
"As a result, some eligible borrowers may miss the opportunity to have their loans forgiven," the Report said.
Three Percent of Borrowers were Denied because they had yet to make 120 Payments, while 4% were Denied because they had No Qualifying Federal Loans.
What makes it difficult for Borrowers is that some of the Department of Education's Key Resources for Students didn't Include Information on the Expanded Program and they Don't require Federal Loan Services to Include TEPSLF Information on their Websites, according to the Report.
A Department of Education Official did say they will have a New Online Portal this Fall that could include a Simplified Application Process, "if they had sufficient resources and time." Right now they Don't have any Specific Plans to do so.
Trump recently Signed an Executive Order on Aug. 21st, forgiving All Student Loan Debt for any Permanently Disabled U.S. Military Veteran, also clears those Eligible Veterans from having to Pay any Federal Income Tax on the Loans. Currently, just Half of the roughly 50,000 Disabled Veterans who are Qualified to have their Federal Student Loan Debt forgiven have received the Benefit because of a Burdensome Application process.
NYC Wins When Everyone Can Vote! Michael H. Drucker
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