Student Loan Forgiveness Program

11 Apr

Student loan forgiveness works like this. If you work for a qualifying “public service” job such as a public school teacher, the balance of your student loan will be forgiven after 10 years while you make some payments. You need to fill out a certification form if your employer is one of qualified agencies. You will receive a letter of acceptance or rejection from FedLoan Servicing, the Department of Education’s student loan service contractor. About 550,000 people went through the process and received approved letters from FedLoan. But some of you on the program might get a huge surprise, unfortunately.
According to NY Times on March 30, 2017 article, Student Loan Forgiveness Article by NY Times, the Dept. of Ed said that some of approved loan forgiveness were invalid. Invalid!? You thought you are on the student loan forgiveness program. You have the approval letter. How could that be possible? I do not know because the Dept. of Ed has not explained the reason. But I am guessing two possibilities:
1. People who issued a letter were incompetent, or
2. The Dept. of Ed has changed some policy about the program without telling us publicly.
If I have a student loan debt, I will work more and make an extra payment every month so I can be debt free faster. I will not rely on a government program. This is one more reason not to borrow at the first place. You better check your status if you have been approved for the student forgiveness program.

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