Report: 99% of government student loan forgiveness applicants rejected

National

(CNN) – A federal loan forgiveness program has turned out to be not so forgiving.

The Government Accountability Office released a report Thursday saying 99 percent of requests for federal student loan forgiveness were denied. Of more than the 53,000 applications, only 661 were approved.

Congress set aside $700 million in 2018 to expand the program. The move was in response to the low number of people qualifying for forgiveness.

The program is meant to help borrowers working in the public sector, like teachers and social workers. However, it requires a borrower to have first applied and been rejected to the original program.

This new report says about 71 percent of those who were rejected by the fix had not done so, creating a confusing process for borrowers.

Copyright 2020 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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