Borrowers trying to get their student loans forgiven are facing mounting processing delays by the Education Department, forcing them to make tough choices as loan servicers demand payments even after their debt should have qualified for loan forgiveness.

The problems center on Public Service Loan Forgiveness, or PSLF, which offers debt cancellation for borrowers who make 120 qualifying payments (equivalent to 10 years) while working full-time in public service jobs. The PSLF program is plagued by growing dysfunction that is preventing borrowers from getting their student loans forgiven. In particular, recent Education Department system delays are preventing the last several months of qualifying PSLF payments from being credited to borrowers, forcing those who qualified for loan forgiveness months ago to continue making payments long after they should have received a discharge. Here’s what’s going on.

Borrowers Should Get Student Loans Forgiven Under PSLF After Making Their 120th Payment

The PSLF program allows borrowers to get their federal student loans forgiven after they have made 120 qualifying monthly payments. These payments must be made on Direct student loans under an eligible repayment plan while the borrower works as a full-time, W-2 employee for a qualifying nonprofit organization or government entity.

Borrowers are supposed to routinely submit a PSLF employment certification form, which allows the Education Department to confirm their employment and periodically count qualifying payments toward the 120 payments that are needed to achieve loan forgiveness. Qualifying PSLF payment counts can then be tracked through StudentAid.gov, allowing borrowers to review their progress and monitor the month-by-month breakdown of what is (and what is not) counting.

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Once a borrower has made their 120th qualifying payments, their obligation to the PSLF program has been fulfilled. They should then be entitled to student loan forgiveness once they submit their final PSLF employment certification.

“We will process your PSLF form........

© Forbes