I think y'all may be getting confused because this reads like bureaucratic gobbledygook.

So let me try to make it clear: The main requirement they are failing is never having asked for loan foregiveness before

That is, they are applying to a program meant to help those who do not qualify for loan foregiveness, but have not bothered to ask for loan foregiveness in the first place.

As for "really apparent when you look at how little student debt has been forgiven" - you really don't want to measure the effectiveness of this kind of program based on how much money it gave out.

A lot of programs that successfully give out all the money do so due to fraud.