Education Dept. Unveils Fix For Education Loan Program’s ‘Bureaucratic Nightmare’

Education Dept. Unveils Fix For Education Loan Program’s ‘Bureaucratic Nightmare’

Public servants with figuratively speaking had been furious, while the U.S. Department of Education heard them. The department unveiled Thursday that it’ll simplify the procedure for borrowers to try to get an expansion associated with the distressed Public Service Loan Forgiveness (PSLF) system.

The move uses a damning Government Accountability Office review, first reported by NPR. The federal watchdog found that during the expansion program’s first year, the department turned away 99% of applicants in that 2019 review.

The change — which the department posted towards the Federal enter with no news launch or any other announcement that is public will address the most alarming revelations within the GAO’s review: 71% of denials had been really because of a documents technicality. Based on the GAO, significantly more than 38,000 candidates were rejected relief underneath the expansion — called Temporary Expanded Public Service Loan Forgiveness (TEPSLF) — merely simply because they had not very very first sent applications for and been denied PSLF.

The division’s fix will be combine the 2 programs into one form in order for borrowers trying to get TEPSLF will not need to first file a split application for PSLF.

The department said of the fix: “We believe borrowers will be better served by using a single form for both programs in a statement. Therefore the point is further reduce confusion also to get rid of the significance of a debtor whom completed not the right kind to perform an innovative new form. “

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