The US Department of Education has released updated student loan forgiveness data as part of the Public Service Loan Forgiveness (PSLF) program.
The Public Service Loan Forgiveness (PSLF) program provides student loan forgiveness student borrowers who work in the public sector and have paid on time for 10 years.
Employment in the “public service” depends on the employer. Borrowers must work for a government or a nonprofit organization. The 10-year payments do not have to be consecutive either; they only need a total of 120 on-time payments during eligible employment.
According to the newly released data, 3,697 applications for loan relief under the PSLF were deemed eligible. 74% of the requests were for borrowers in the public sector, while the other 26% were in the non-profit sector.
Here are other key statistics from the data:
- A total of 2,429 individual borrowers were repaid their loans.
- The average balance paid out was $ 67,467.
- The total amount laid off has reached $ 163,876,357.
The program came under fire for a low approval rate, and that rate is still low. However, the data shows that many applicants are simply ineligible. The most common reason PSLF applications were deemed ineligible was that 57% of applications did not have the required qualifying payments.
The PSLF program has strict requirements, but this data shows that programs are made. Proposals were made to improve the program, but there was no movement in Congress. Borrowers should make sure to check the requirements for PSLF and speak to their loan administrator if they are hoping for forgiveness.
The problem with public service lending? It works most of the time.
For some, it will be easier to get public service loans
Follow me Twitter and connect with me LinkedIn.