Department of Education data indicate zero borrowers are on pace to qualify for Public Service Loan Forgiveness by 2017, a prominent higher ed group warned the department in a letter last month.
Justin Draeger, president and CEO of the National Association of Student Financial Aid Administrators, wrote in the letter to Education Secretary John King Jr. and Under Secretary Ted Mitchell that the organization was concerned many more borrowers should be qualifying for loan forgiveness, but administrative issues are creating obstacles.
“If the data reveal a likely large underutilization of this public benefit, steps should be taken now to help remedy this situation before October 2017,” Draeger wrote.
The loan forgiveness program was established in 2007 to allow borrowers of federal direct student loans who make 120 monthly payments under an income-driven repayment plan while working full time for a qualifying employer in the government or nonprofit sector to have their loan balance forgiven after 10 years.
Read more at Inside Higher Ed: https://www.insidehighered.com/news/2016/11/22/letter-warns-education-department-there-may-be-no-borrowers-eligible-public-service