Student Loans; Grants; Laws; Data; Funding. His wife, Heather, a teacher, had been denied TEPSLF for her federal student loans. "When asked how it feels to have more than $40,000 in student loans forgiven, Austin laughed and said it has allowed him and his wife to "turn our eyes forward, because we can stop making payments on colleges from 12 years ago and we can start saving for college 10 years in our kids' future." Remember, student loan …
DeVos then rewrote the regulation and created an incredibly high standard for a burden of proof for student borrowers. The rule provides for student loan forgiveness for defrauded students.Led by Massachusetts Attorney General Maura Healey and California Attorney General Xavier Becerra, the The borrower defense rule allows the Secretary of Education to discharge student debt when students were defrauded by their colleges. U.S. Department of Education. The New … Can this happen? In 2016, the Obama administration wrote a new regulation outlining how student borrowers could get loan forgiveness after claims of fraud increased because of the now-defunct Corinthian Colleges and ITT Tech.When DeVos came into office in 2017, she delayed the Obama administration’s 2016 rule.
But after being contacted by NPR, they reapplied one last time. In return for 10 years of government or not-for-profit work and 120 eligible student loan payments, borrowers were told that the Department of Education would forgive whatever remained of their federal student loans. According to the lawsuit, that standard is at odd with the Department’s position that misrepresentation doesn’t require proving that. "Congress and the Department of Education have the legal authority to cancel all student loan debt. While the program was meant to help thousands of public servants who felt unfairly excluded from PSLF, its burdensome requirement that they first be denied PSLF created what Emrey-Arras calls a "bureaucratic nightmare. The attorneys general said that requirement is “arbitrary and onerous.” They also say the evidence requirement is unachievable and that the rule should be reversed because it is “arbitrary and capricious.”I am an education policy wonk dedicated to improving education for every student. "The department's lack of urgency in helping borrowers navigate the Public Service Loan Forgiveness Program has left applicants confused, panicked and rightfully frustrated," said Rep. Bobby Scott, a Virginia Democrat and chairman of the House education committee. In October, their application for TEPSLF was approved. This program provides additional conditions under which borrowers may become eligible for PSLF. On May 23, 2018, the U.S. Department of Education issued a bulletin announcing the temporary expansion of the Public Service Loan Forgiveness (PSLF) Program.
"I am relieved that — in response to intense public pressure — the department is finally taking a step toward fixing the PSLF application process. 22 states and the District of Columbia have filed suit against Education Secretary Betsy DeVos over her new “borrower defense” rule. For additional information visit StudentAid.gov/tepslf. According to a report from December 2018 by MeasureOne, about 92% of student loans are owned by the US Department of Education. "We think it's a great move. Alex Wong/Getty Images Here are the details. This encompasses 43 million borrowers with outstanding federal student loan debt of roughly $1.4 trillion dollars. But the program's requirements are so rigid and were so poorly communicated in those early days that the In response to an outcry from borrowers and lawmakers, in 2018 Congress set aside $700 million for TEPSLF — to help borrowers who had fulfilled their public service but who were, unbeknownst to them, in the wrong repayment plan. Outside of education, I also worked in Kentucky state government with the General Assembly, the state auditor, and the Cabinet for Economic Development.Opinions expressed by Forbes Contributors are their own.I write about education, including policy, student debt, and more. The Education Department forgave more than $40,000 in outstanding federal student loans and issued the Austins a refund for the extra payments they'd made.It's unclear how many of the original 38,000-plus denied TEPSLF applicants still technically qualify for loan forgiveness, like the Austins, and simply need to reapply.On Thursday, lawmakers welcomed the consolidation of application forms but also warned Education Secretary Betsy DeVos that the department's efforts to improve the PSLF and TEPSLF programs should not stop here. However, this change alone does not satisfy the department's responsibility to faithfully implement the law. "Austin said that the rejection was demoralizing and pushed him and Heather to abandon their hope of loan forgiveness. Before joining New America, I was an education policy advisor at Third Way. Under the Obama rule, a student just needed to show a substantial misrepresentation by the school to receive relief.The DeVos borrower defense rule makes that stricter. "How likely is it for this to happen? Led by Massachusetts Attorney General Maura Healey and California Attorney General Xavier Becerra, The attorneys general of 22 states and the District of Columbia have filed suit against Education Secretary Betsy DeVos over her new “borrower defense” rule. (Photo by Pat Greenhouse/The Boston Globe via Getty Images)