Student loan forgiveness program denies nearly all applicants

The U.S. Department of Education has only approved 1% of requests from borrowers applying to the Temporary Expanded Public Service Loan Forgiveness program. And the figures aren't better for the Public Service Loan Forgiveness program as a whole.

According to a report from the Government Accountability Office, the PSLF program and the subsequent TEPSLF program are still denying most borrowers. As of June, of the 102,051 applications received and processed in the entirety of the PSLF program, only 1,216 had been approved, leaving 100,835 applications, or 99%, rejected. Further, the Department of Education only approved 661 of 54,184 requests from May 2018 to May 2019 for the TEPSLF program, an amount totaling about $26.9 million. Congress approved $700 million—$350 million for 2018 and $350 million for 2019—for the temporary expansion of the program. In September, the House of Representatives Subcommittee on Higher Education and Workforce Investment held a hearing on the issue. Several witnesses spoke before the subcommittee. James H. Steeley, president and CEO of the Pennsylvania Higher Education Assistance Agency, the loan servicer that handles the PSLF program, declined to attend. Most members of the subcommittee agreed that the program needs to be fixed.

The PSLF program was created in 2007 by President George W. Bush's administration. The program seeks to promote careers in public service by forgiving federal student loans for borrowers who have made 120 loan payments, or 10 years' worth, and work in public service.

The AVMA was one of several organizations that requested the Department of Education improve the PSLF program in 2018 when the low acceptance rates were first reported. Some veterinarians take public sector jobs to take advantage of the forgiveness program, but it is unclear whether any veterinarians have been approved for the program.

Many borrowers have reported frustration with the system. A majority of the TEPSLF program applicants (71%) were denied because they had not submitted a PSLF program application, according to the GAO. Part of the temporary program requires that applicants apply for the PSLF program and, once rejected, apply for the TEPSLF program.

"The process can be confusing for borrowers who do not understand why they must apply separately for PSLF, a program they are ineligible for, to be eligible for TEPSLF," said the GAO in its report (PDF).

Some online documents from the Department of Education still do not include details about the TEPSLF program, including the Online Help Tool. The GAO concluded in its report that requiring all loan servicers to include TEPSLF program information on their websites and including TEPSLF program information in the Department of Education's online tool for borrowers would likely increase the likelihood that borrowers are able to obtain the loan forgiveness for which they qualify.

The AVMA has financial resources available for borrowers who need information on current federal or state loan repayment programs.

The AVMA also has a Public Service Loan Forgiveness page that includes best practices for veterinarians looking to participate in the program.

Any veterinarians who have applied for and been rejected or accepted for the PSLF or Temporary Expanded Public Service Loan Forgiveness program are encouraged to JAVMAnewsavma [dot] org (contact JAVMA News) to tell their story.