FSA Gives First Look at Public Service Loan Forgiveness Application Data
By Allie Bidwell, Communications Staff
As part of its Quarterly Student Aid Report, the Department of Education's (ED) Office of Federal Student Aid (FSA) on Monday published data on applications for Public Service Loan Forgiveness (PSLF), which showed nearly 1 million borrowers have submitted applications.
Of the applications submitted, about two-thirds have been approved, FSA said. The PSLF Program was established in 2007 through the College Cost Reduction and Access Act, and allows borrowers with Federal Direct Loans who work for a qualifying employer and make on-time payments for 10 years to have the remainder of their debt forgiven. At the soonest, some borrowers may have their loans forgiven in October 2017.
“Today’s report demonstrates measurable progress in our efforts to help borrowers successfully manage repayment,” said Education Secretary John B. King Jr., in a statement. “We want to ensure that those Americans who have devoted a decade of their careers to public service are not burdened by debt while making invaluable professional contributions to their communities.”
The report also showed a continuing upward trend in income-driven repayment plan enrollment, and a decline in new loan defaults and delinquency rates. Enrollment in income-driven repayment plans, such as Income-Based Repayment (IBR) and Revised Pay As You Earn (REPAYE), continued to increase, with nearly 5.3 million Direct Loan borrowers enrolled in such a plan as of June 2016. However, the Consumer Financial Protection Bureau (CFPB) suggested in a recent report that some borrowers may be struggling or unable to enroll in income-driven repayment plans due to servicing issues that complicate the process.
Publication Date: 8/23/2016
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