Best-selling author and financial expert Dave Ramsey called the Public Service Loan Forgiveness (PSLF) program a “scam ” on “Mornings with Maria” Thursday, noting that only 2% of applicants get approved for relief.
“98% of the people that applied for that so far have not gotten forgiveness, only 2% – that’s known as a scam,” Ramsey said of the of the U.S. Department of Education data (DOE).
The department revealed that $7.1 billion was canceled for disabled borrowers and $1.1 billion for students misled by fraudulent institutions.
“The $11.5 billion was a normal course of business,” Ramsey told FOX Business’ Dagen McDowell “If you become disabled, you have always gotten your student loans canceled… if you got defrauded by a school that went out of business, you get that student loan canceled.”
But Ramsey believes the public service student loan forgiveness program is misleading and inefficient, as proved by its applicant approval rate.
“The [loan] cancelation that [Democrats] are all bragging about — that doesn’t work,” he said.