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Temporary Expanded Public Service Loan Forgiveness Denies Most Requests

A new report from a government watchdog, first obtained obtained by NPR, says an expanded effort by Congress to forgive the student loans of public servants is remarkably unforgiving.

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.