Bankruptcy Law, Student Loans, Timothy Kingcade Posts

Public Service Student Loan Forgiveness Program Rejects 99% of Applicants

A simple promise was made to student loan borrowers by the government: Work in public service for 10 years, make your student loan payments on time for 10 years, and the Dept. of Education will forgive the remaining balance on the loan. Borrowers have complained for years that the program has not worked as advertised, and new data reveals they’re right.

The U.S. Department of Education released the latest statistics for public service loan forgiveness:

As of June 30, 2018, 28,000 student loan borrowers submitted 33,000 applications for public service student loan forgiveness program. Of that total, approximately 29,000 applications have been processed. Of that total, more than 70% of applications have been denied due to student loan borrowers ‘not meeting the program requirements.’ Another 28% of applications for public service loan forgiveness were denied due to missing or incomplete information on the employment certification form.

The Public Service Loan Forgiveness Program is a federal program that forgives federal student loans for borrowers who are employed full-time (more than 30 hours per week) in an eligible federal, state or local public service job or 501(c)(3) non-profit job who make 120 eligible on-time payments.

So, who has been approved?

Approximately 300 applications have been approved, but only 96 borrowers have collectively received $5.52 million in public service loan forgiveness.

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For borrowers who are struggling with student loan debt, relief options are available.  Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. There are ways to file for bankruptcy with student loan debt.  It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at