Posted on 09/28/2018 8:12:37 AM PDT by yesthatjallen
A program allowing public servants to receive student loan forgiveness has rejected more than 99 percent of its applicants because of confusion about the program and a lack of coordination with the company running it, a government audit report showed.
The rejection statistic, which had been included in a statement from the Department of Education on Sept. 19, was the subject of a government audit released Thursday.
The audit report from the Government Accountability Office noted "the large number of denied borrowers suggests that many are still confused by the program requirements."
It also criticized the DOE for not cooperating with the company hired to run the program, FedLoan.
Among its findings, the audit report noted that DOE staff had "incorrectly identified what they thought was an error in how the servicer was certifying borrowers that were employed part-time because they were not aware of the most recent guidance that other staff at Education had emailed the servicer on the topic."
The report also said almost all of the communication between Education and FedLoan is being done through email, creating a "fragmented collection of guidance and instructions creates a risk that relevant information may be overlooked."
The GAO recommended that the DOE focus on standardizing their payment information and provide more information to both borrowers and FedLoan.
The DOE was not immediately reachable by The Hill. The department released a statement included in the audit report, agreeing to many of the report's recommendations, but did not offer a timeline or strategy to meet them.
God, this is just awful
The education-industrial complex and the political deep state get into bed together - paid for by massive government spending and huge personal debt.
Good thing they’re dysfunctional.
Kill it!
Maybe if ‘professors’ were not paid $400K to teach one course then college would not be that expensive.
They should work for free- if they love socialism that much.
Yup. Obama really ramped it up. Wanted people going into government and not the private sector.
Frankly there is no other way someone could graduate from Yale or Georgetown and still afford to take a job as a bureaucrat slug.
I do now.
When was it started? Who proposed it? Who enacted it?
Don’t forget all the diversity officers. Example:
Ohio State employs 88 diversity-related staffers at a cost of $7.3M annually
https://www.thecollegefix.com/ohio-state-employs-88-diversity-related-staffers-at-a-cost-of-7-3m-annually/
EXACTLY!!! I hear a radio commercial for this about 4 times an evening....along with the guy on the bus who has hunger issues 1 in 6 Americans...
We pay for these stupid messages and it infuriates me to hear them over and over and over.
If you borrow for your education, pay for it, no outs for selecting a taxpayer funded job!!!!!!!
Good.
Student loans are stupid anyway. They aren’t subject to any sort of credit check to see if they can be paid back, they give money for dumb degrees that won’t possibly earn the required income.
One of my kids just graduated as an astronautical Engineer. He’s very well compensated.
He has about $15,000 in student loans left, then maybe $20,000 to us.
Two weeks ago, he paid $3500 on his loans. He wants to be paid off in a year or so.
He makes great money, works for NASA, lives with several roommates and drives a junk car. Wants to be debt free.
Another son just moved away to take a trick driving job. He is living at Grandma’s house. He just started and gets his first paycheck today. A couple days ago, he was down to $1 in cash.
I told him to tell Grandma to slide him $20 and he said no. Wanted to make it on his own. He’s stubborn that way.
Hey! I have a great idea! Let’s set up a well-funded bureaucracy to deliver a financial service to people. And then — let’s not deliver that financial service to people! Whoo-Hoo! The money! It’s all ours!!!!
Averaging only a little less than $83,000 each . . .
I would have refusd 100% of the requests.
There’s another side to consider. Fed gov has difficulty to recruit specialists such as physicians, cyberpros, engineers.
One carrot offered is student loan forgiveness if an applicant agrees to serve at least 4 years.
I am sure there can be abuses as well.
But for legit purposes, it appears the recruitment incentive is a sham.
the program began under the bush admin and was originally aimed at the professional student (dr. lawyer, dentist...) to try to keep them in the non profit area..but the reality was any person working for a non profit whether govt agency or not could participate...now here is the real interesting part only 2 payment plans would be considered eligible payments in the program (IBR - Income based repayment and the standard 10 yr repay). you had to make 120 payments using one of those plans..funny thing (at least I think it is funny) is if you use the standard plan for 120 payment there is nothing left to forgive.
The IBR payment was calculated on the income you had above the poverty level. A certain % of that was what could be paid toward your loan (a payment was not to exceed a standard payment) so any decent lawyer or dr would never have much to forgive.., so it was more of a political stunt in the beginning...
Now everyone wants a forgiveness plan and they are out there and we pay for it...because now there are many forgiveness plans and almost all repayment plans qualify and more people are willing to stay in debt to get the loan forgiven...i could go on and on about this..but i am pretty sure i will have a stroke if i do....
Sounds like you did a stellar job with your kids to grow up with those values.
> “Now everyone wants a forgiveness plan and they are out there and we pay for it...because now there are many forgiveness plans and almost all repayment plans qualify and more people are willing to stay in debt to get the loan forgiven ...”
This report says public servants are getting shafted. How does that square with your view that practically everyone is getting a forgiveness plan?
Students graduate with lots of debt and no marketable skills. Without a future, no wonder they turn to socialism. Live off of someone else’s hard work.
I don’t think I want to know what a “trick driving job” is.
Truck
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