A program intended to wipe away the student loans of qualifying public servants has rejected more than 99 percent of those who applied, according to a government audit that found that “fragmented” management and “piecemeal” operating instructions had contributed to the failure to forgive more debt.
1. What does the Education Department say is the reason for the rejections?
2. What did lawmakers create after the Consumer Financial Protection Bureau released an analysis of the flawed program?
3. From an internal control standpoint, what did the program lack?
4. What is the Trump administration proposing regarding the program? What is the position of the Congress?
Cowley, S (2018). 28,000 Public Servants Sought Student Loan Forgiveness. 96 Got It. The New York Times, Sep. 27 (Retrievable online at www.nytimes.com/2018/09/27/business/student-loan-forgiveness.html)