In letters to the 25 largest private holders of federally backed student loans, the SBPC along with the American Association of University Professors; American Federation of Government Employees; American Federation of State, County and Municipal Employees; American Federation of Teachers; the Coalition of Labor Union Women; International Federation of Professional and Technical Engineers; Labor Council for Latin American Advancement; National Treasury Employees Union Independent Staff Union; Nonprofit Professional Employees Union (IFPTE Local 70); National Education Association; and Service Employees International Union, representing nearly 9 million union members, demand the companies take immediate action to ensure borrowers with older federal student loans are able to access Public Service Loan Forgiveness (PSLF). Following the Department of Education’s recent overhaul of PSLF, a review by the SBPC revealed that many of these companies are currently providing misleading and outdated information that could prohibit borrowers from getting relief.
The 25 companies who received letters collectively hold more than $122 billion in older federal student loans originated under the now-defunct Federal Family Education Loan Program (FFELP). In order for public service workers with older loans to take advantage of the time-limited PSLF changes, these companies that manage their loans must provide timely, accurate, and complete information.
Read the press release: Advocates Warn: Student Loan Companies Seek to Undermine PSLF Overhaul to Pad Profits
A set of exhibits documenting ongoing misrepresentations by the student loan industry related to the Department’s PSLF waiver is available here.