Federal Government Fixing Program to Relieve Overburdened Student Loans
(WIVB) – If you have heavy student debt and work in the public sector, federal officials are reworking a loan cancellation program that could wipe the slate clean.
They fix the public service loan forgiveness program, which was designed to encourage college students to consider working in the public sector or for nonprofit organizations.
On paper, the authorities gave him an âAâ, but it was the execution that failed.
Congress wanted to steer professionals in college debt to unfilled public service jobs, such as teachers and first responders, by forgiving their loans.
âIf you have worked full time in the public sector for a number of years, you should contact your loan officer and ask if they are canceling a public service loan,â said Noelle Carter of the Consumer Credit Counseling Service. .
Carter says it didn’t quite work that way. Congress established the Public Service Loan Cancellation Program in 2007 for graduates who worked in a public service or nonprofit agency, and after 10 years of payments, the loan balance would disappear.
But in the first year of eligibility, 99% of applicants were rejected and 94% of military borrowers.
âSo there was something inherently going on with the requirements or the qualifications to receive forgiveness if so many were denied their candidacy,â Carter said.
Reviews have shown that many of these loans were turned down due to minor errors on the part of applicants, loan officers, and the US Department of Education.
The Education Secretary is now relaxing some of the rules for forgiving loans, and Carter says Consumer Credit Counseling is uniquely qualified to help.
âWe saw the writing on the wall that there would be so many people so confused,â she said.
Carter told News 4 that his credit counselors have specific knowledge about these loans.
“So if you didn’t know what kinds of loans you had, or whether you had the wrong kind of loan, or how to get it in the right kind of loan, that was a huge thing that disqualified your payments made,” she declared. .
The education department estimates that up to half a million professionals can benefit from the revamped loan cancellation program.
You can contact Consumer Credit Counselors for assistance at 1-800-926-9685 or Click here.
Al Vaughters is an award-winning investigative journalist who has been with the News 4 team since 1994. See more of his work here. To submit a Call 4 action, click here.