"When the federal government’s Public Service Loan Forgiveness (PSLF) started in 2007, the intention was presumably not to make qualification as exclusive as the Met gala. Unfortunately for the Department of Education, less than 1% of eligible borrowers have been approved. This year, a staggering 98% of PSLF applications were rejected," Morning Brew reports.
..."What went wrong: Congressman John Sarbanes, who authored the bill creating PSLF, hoped the program would offer graduates the financial freedom they needed to pursue public service careers.
'This program is a critical factor in helping drive the pipeline of qualified people into public service,' Sarbanes told Morning Brew. 'In many respects, it inspired graduates to pursue careers in public service. And so any impediment to applicants receiving loan forgiveness obviously undercuts the original purpose of the program and defeats the opportunity to match up really qualified graduates with jobs that can benefit from their talents and their skills.'
Instead, the dismal track record of PSLF approvals has had a chilling effect on mission-driven careers, according to Erin Powers, the Director of Marketing and Communications at the National Association of Student Financial Aid Administrators (NASFAA).
'Seventy-four percent of [our members] reported that they were not confident they would ultimately receive loan forgiveness, even if they follow all of the PSLF requirements,' Powers explained to HR Brew. 'This, in turn, prevents employers in the public-service sector from recruiting and retaining quality employees. The employees’ mistrust of the program and concern over their debt can lead would-be public servants into other types of work.'”
NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.
Publication Date: 10/7/2021