Service workers are very important to our society. They teach our kids, keep our streets safe, and take care of us when we’re sick. Public service workers receive student loan forgiveness under qualifying circumstances. But, if you don’t know what you’re doing, it can hurt you in the long run.
But, one teacher in Arizona found this out the hard way.
The Public Service Loan Forgiveness program allows public service workers to obtain student loan forgiveness after 120 qualifying payments have been met.
Jennifer Gardner, a math teacher in Phoenix, worked for 10 years after obtaining her bachelor’s and master’s degree. She was making her loan payments and looking forward to life after student loan debt. Only two payments away from completion, she found out she didn’t qualify.
Student Loan Forgiveness Hoops
She taught at a non-profit public school that served lower-income families, which is part of the qualifications. There’s a lot of work that goes into making what they consider ‘qualified payments’. You have to send in W-2s to prove what you’re making.
It also requires you to send an employer certification form to the loan company. Despite complying and believing she met every requirement, Gardner was rejected from service.
“I started getting denial letters. So, it said ‘no your employer doesn’t qualify anymore,'” said Gardener. “What is it that doesn’t qualify? I’m a public servant. I’m a public teacher. I teach math. Like how do you get more public service than that?”
It’s All in the Details
Gardner received eight year’s worth of “You’re Qualified” letters from her loan servicer. Therefore, to get a denial just two payments before completion was extremely challenging for Gardner.
According to the loaner, her paychecks were issued from a company called The Leona Group. They are a for-profit organization hired to manage charter schools in various states. Because her main employer isn’t a non-profit school district, she’s seen as working for the group.
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Her denial letter stated: “After further review and after consulting with the Department of Education, we determined that this approval was issued in error. As a result, we are reversing our approval and revoking credit for any payments.”
There are numerous states that allow the schools to hire companies, like The Leona Group. They serve their schools and hire teachers. There’s no telling how many teachers might ultimately be denied student loan forgiveness.
The school district stands firmly behind Gardner and says she could receive full credit. Your overall body of work, not who hired you. Despite this detail, the district still serves low-income families. Yet, to lose all student loan forgiveness privileges after 8 years of approval letters and on-time payment has been a hard pill to swallow.
The best advice is to keep up on all the documents to fulfill the qualifications. Don’t leave any stone unturned. If you have any questions or want to know more about student loan forgiveness, give Financial Helpers a call. We’d love to hear from you.
