Teacher To Betsy DeVos: 'Why Didn't You Forgive My Student Loans?'


An educator thought she was on track to receive student loan forgiveness.

She made the payments. She thought she did everything right.

Then, she was told years later that she didn't qualify.

Here's what you need to know - and how you can avoid her fate.

New Lawsuit: Student Loan Forgiveness

As first reported by NPR, Debbie Baker, a Director Education at a non-profit organization in Tulsa, Oklahoma, expected that her $76,000 of student loan debt would be forgiven through the Public Service Loan Forgiveness program, a federal program through the U.S. Department of Education that forgives federal student loans for individuals who work in public service.

According to Baker, her student loan servicer - the company responsible for collecting and managing her student loan payments -  allegedly told her for nine years that she met all the requirements to receive public service loan forgiveness. As such, Baker thought she would have all her federal student loan forgiven after meeting the program's requirements, which she believed she met. However, after making her usual monthly payments under an income-driven repayment program, the U.S. Department of Education said she did not qualify for student loan forgiveness. You can imagine Baker's reaction.

Now, Baker is a plaintiff in a new lawsuit filed by the American Federation of Teachers, one of the nation's largest teacher's unions, against the U.S. Department of Education, which is led by Secretary Betsy DeVos. The lawsuit alleges, among other things, that:

  • the Public Service Loan Forgiveness program is "grossly mismanaged" and
  • the program, as it's currently administered, violates the Due Process Clause of the Fifth Amendment to the U.S. Constitution
  • the U.S. Department of Education is aware that student loan servicers make misrepresentations to borrowers, which results in borrowers getting rejected for student loan forgiveness and suffering financial and other harm.

Was Baker given the wrong information from her student loan servicer? Was it Baker's responsibility to understand all the requirements of the program? Is the program administered properly? What is the proper role of student loan servicers - advisors or student loan payment collectors? Many of these issues may be addressed as a result of this lawsuit.

Liz Hill, the Education Department's press secretary, told NPR: "The Department has improved internal processes and enhanced communications and outreach to borrowers." Hill also referenced the automated PSLF Help Tool that assists borrowers with public service loan forgiveness, including requirements and repayment plans.

So, why didn't Baker qualify?

Student Loan Forgiveness

The Public Service Loan Forgiveness Program is a federal program created by Congress in 2007 that forgives federal student loans for borrowers who are employed full-time (more than 30 hours per week) in an eligible federal, state or local public service job or 501(c)(3) nonprofit job who make 120 eligible on-time payments. To date, only about 1% of borrowers who have applied for the program have been granted student loan forgiveness.

Baker didn't qualify for public service loan forgiveness because her student loans weren't eligible. Here's what you need to know to avoid her fate.

To qualify, you must have Direct student loans. Baker had FFEL Loans, which are not Direct Loans. What do you do if you have FFEL Loans and want public service loan forgiveness?

Baker should have consolidated her FFEL Loans into a Direct Consolidation Loan. FFEL are not considered federal student loans because they were issued by financial institutions like banks, not by the federal government. How do you know if you have Direct student loans? You can check at Federal Student Aid. If you don't see the word "Direct" next to your student loans, then you may need to consolidate those student loans.

How do you consolidate FFEL Loans? If you decide to consolidate those student loans, you can do so through StudentLoans.gov.

Importantly, if you consolidate FFEL Loans, only your student loan payments made after you consolidate are eligible for public service loan forgiveness. For example, if you made 50 payments on your FFEL Loans, and then consolidated these loans into a Direct Consolidation Loan, you (unfortunately) would need to make 120 additional payments to qualify for public service loan forgiveness.

Public Service Loan Forgiveness: Additional Resources

1. Student Loan Calculator

Remember, you also must make the majority of your federal student loan payments under an income-driven repayment plan. This student loan calculator can help you choose the best income-driven plan for you.

2. Student Loan Repayment Plan

This free student loan repayment quiz can help you determine which student loan repayment options, including student loan forgiveness, are best for you based on your individual circumstances.


Zack Friedman is the author of the highly-anticipated, blockbuster book, The Lemonade Life: How To Fuel Success, Create Happiness, and Conquer Anything. Zack is the fou