Report: Confusing rules deny loan forgiveness to students

September 05, 2019 - 11:21 am

A new report finds that confusing rules in a student loan forgiveness program have led to rejections for thousands of applicants.

The Government Accountability Office says the Education Department should simplify the application for the Temporary Expanded Public Service Loan Forgiveness program.

Congress last year allotted $700 million to expand an earlier forgiveness program with high denial rates, but 99% of applicants have been rejected from even that temporary funding.

Most of the denials stem from an eligibility rule added by the department but not explicitly ordered by Congress. House Democrats have scheduled a hearing over the report.

The department isn't immediately commenting.

Public Service Loan Forgiveness was created in 2007 to help public workers, but narrow rules have led to high rejection rates.