Confusing rules deny loan forgiveness to students

U.S. & World News
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FILE – In this Sept. 7, 2017, file photo, Education Secretary Betsy DeVos speaks at George Mason University Arlington, Va., campus. Students who attended for-profit colleges were twice as likely or more to default on their loans than students who attended public schools, according to a new federal study. The report comes as Education Secretary […]

Washington, D.C. (AP) -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.

Additional information can be found at: https://www.insidehighered.com/news/2019/09/03/devos-imposes-tougher-debt-relief-standards-student-borrowers-alleging-fraud

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