If you are still waiting on a student loan claim you filed with the federal government, you may be one of more than 65,000 applications that have not been processed by the Department of Education. The big question on everyone’s mind is when will student borrowers get answers (or solutions) from the Trump administration?
Waiting on a student loan claim filed with the Department of Education? You could be affected by the following:
- Accruing interest and adding more money to student loan debt
- Stalling/loosing ability to have student loan debt forgiven
- Limiting possibility of future financial security
Why Are Student Loan Forgiveness Applications Getting Stalled?
The Department of Education is tasked with processing student loan forgiveness applications and fraud claims for student borrowers. Under President Obama, the Department handled more than 28,000 fraud claims just for former students of for-profit Corinthian Colleges – resulting in $558 million in student loans being forgiven.
Under the Trump Administration, the Department of Education has yet to address over 65,000 unprocessed claims. In the meantime, these loans have continued to accrue interest – a total of $143 million in added debt. Besides delaying Obama-era protections for student borrowers, Secretary of Education Betsy DeVos has yet to give thorough information on the department’s progress.
What Loan Forgiveness Options Are Available To Students?
Although it’s unclear how and when the federal government will resolve the tens of thousands of student loan forgiveness claims, borrowers still have the ability to take control of their finances. The first step is taking a serious look at the student loan(s) owed, and determining whether these loans are properly consolidated. Learn more about student loan forgiveness with the resources at Student Debt Relief!