This Woman Was Denied Public Service Loan Forgiveness Eight Times — She Says a ‘Glitch’ Is to Blame

A personal assistant working at a hospital cautioned viewers about the aftermath of student loans. The woman started with $96,000 but is now left paying off over $200,000 and had opted for a Public Service Loan Forgiveness scheme—only to be denied 8 times. 

@leila.the.pa narrated her experience paying off a massive student loan on TikTok, receiving 3.2 million views as of publication. The hospital employee compared the loan to a mortgage and labeled the Department of Education as the “biggest con artists.” 

She said she started with a $96,000 loan balance, has paid $165,356.43 toward it so far, and still owes $220,810.73 due to accumulated interest. The woman said that despite financial stability as a personal assistant at a hospital, paying back the balance was strenuous. 

To tackle this problem, she planned on applying to the Public Loan Forgiveness Services while working at the non-profit hospital. After fulfilling eligibility criteria like her colleagues, she proceeded to apply—eight times. She was denied all eight times.

The woman accused the Department of Education of mistakenly classifying her employer as a for-profit hospital, despite her working alongside colleagues at the same nonprofit facility who successfully qualified for forgiveness.

She even reached out to them and claimed she was put on hold for 8 hours on one instance. 

After eight hours of waiting, they told the woman it was a glitch in the system and didn’t know if they could help her. She also mentioned that her account had gone into forbearance right after graduating. Even with that, she was informed that it was another glitch. 

TikTokers Empathized With the Personal Assistant

Now, she revealed that her servicer, Mohela, was responsible for putting her and many other customers in such circumstances. She said she was unable to qualify for the forgiveness program because of the forbearance period, which is why she blamed her loan servicer. 

The woman commented on the gravity of the situation and said, “I’m trying not to cry…I’m just going to be in debt forever…” She said the disparity between her original loan amount and what she now owes contributed to that fear.

The hospital worker’s distress deeply resonated with many on TikTok who extended their empathy towards her. With her situation in mind, a user mentioned, “Compound interest on student loans should be illegal.”

Others called the ordeal “insanity” and urged the woman to seek legal counsel at the earliest. Similarly, many claimed that perhaps student loans were “predatory” and advised students against opting for them.

The details from this article are solely based on the findings and experience shared by @leila.the.pa on TikTok. The Daily Dot was unable to independently verify details of the system glitch mentioned by the TikToker. Readers are encouraged to refer official websites for more details.