Nearly all Public Service Loan Forgiveness applications are rejected

Evidence

In practice, 99 percent of applications for Public Service Loan Forgiveness were rejected in the program’s first year, which spanned from May 2018 to May 2019;40 this year, that number has crept down slightly—to a little over 97 percent. Assuming Veronica doesn’t qualify for PSLF, she may be able to get the balance of her loan forgiven after twenty or twenty-five years of on-time payments under her income-based plan—but since the amount of the forgiven debt will be treated as income, she’ll be hit with a potentially massive tax bill. — Dorothy A. Brown, The Whiteness of Wealth, 313

Categorization

• QUESTION: Why are 97-99% of PSLF applications rejected? Worth chasing the specific eligibility rules that trip applicants.