What a Crock! Turns Out Only 0.5% Public Service Participants Qualify For Loan Forgiveness

Around Fall of 2007, Pres. Obama’s administration came out with a program that allowed some students to have their loans forgiven if they worked for a “public service jobs” for 10 years.   Ten years later, these students who worked for 10 years at low paying jobs — are having their applications for loan forgiveness denied because the “public service job” they were doing for 10 years was not a “public service job” in the eyes of the Dept. of Education anymore.

Of 20,521 applications for loan forgiveness — only 96 borrowers were approved.  That is less than 1% !

The definition of “public service job” had changed throughout the year and the servicers misled borrowers by saying mischievously, “oh absolutely, you still qualify….keep paying that loan.“  I feel bad for these people — hopefully Congress fixes this (not holding my breathe).

Can you imagine after 10 years of working — you are told, “sorry, you don’t qualify but thank you for your service.  Next in line!“  That’s a bunch of crock and makes me so angry.

The original article by legal contributor Alan White on CreditClips can be found here.

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