Will Borrowers Be Denied Student Loan Forgiveness?
Now FedLoan Servicing is in the news again for problems related to the Public Service Loan Forgiveness (PSLF) program. PSLF allows borrowers to get their Direct federal student loans canceled after making 120 monthly payments under an income-driven repayment plan while working full-time for a qualifying public service organization… The American Bar Association (ABA) is reporting that FedLoan Servicing has been notifying borrowers that certain organizations that clearly qualify as public service employers under applicable federal regulations are not qualifying employers for the PSLF program. In fact, several of the ABA’s own employees were notified that the ABA itself doesn’t qualify as a PSLF-eligible employer, even though they are paid by the ABA’s 501(c)(3) arm and are clearly engaged in public service activities.