In theory, student loan forgiveness sounds simple. But over the last decade, the reality has been far more complicated. Since its launch, the Public Service Loan Forgiveness (PSLF) program has left many borrowers confused and frustrated.

Despite doing everything they thought was right, thousands of people have been denied forgiveness—often due to issues outside their control. A 2018 audit revealed that nearly 20,000 people submitted completed forgiveness applications, but only 55 were approved (Conway, 2018).

So what’s going wrong?

Problems with the Public Service Loan Forgiveness System

1. Incorrect Information from Loan Servicers

One of the biggest problems is misinformation. Many borrowers depend on their loan servicers for guidance, but numerous lawsuits have accused servicers of giving inaccurate or incomplete advice.

For example, some borrowers were told that all they needed was 10 years of public service work and on-time payments. But the truth is: there are additional requirements. This confusion has cost many people their chance at federal student loan forgiveness.

2. Only Certain Loan Types Qualify

To be eligible for PSLF, you must be on an income-driven repayment (IDR) plan, such as IBR, PAYE, or REPAYE. However, many borrowers begin repayment on standard or extended plans—and are never informed that these plans don’t qualify.

Worse yet, some loan servicers fail to tell borrowers they need to consolidate certain loans to become eligible. These missteps have resulted in borrowers making years of payments that don’t count toward forgiveness.

3. Strict Documentation Requirements

Many borrowers assume the government will automatically track their progress toward forgiveness—but that’s not the case.

Loan servicing is managed by third-party companies, and documentation mistakes are common. To stay eligible, borrowers must:

  • Submit annual employment certification forms
  • Get employer (HR) signatures on government PSLF forms
  • Keep track of all loan documents and payments

Failure to meet these requirements has caused many to lose progress or be denied forgiveness altogether.

Learn More About How the Government Forgives Student Loan Debt

The student loan forgiveness process can feel overwhelming, but you don’t have to go it alone. At Hope Credit, we’ve helped thousands of borrowers understand their options, correct errors, and get back on track toward student loan relief.

Whether you’re just starting or have run into roadblocks, we’re here to help you navigate forgiveness programs with confidence.

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