This report details the findings of a Student Borrower Protection Center and National Consumer Law Center investigation into the treatment of incarcerated student loan borrowers by the U.S. Department of Education and its sole servicer for student loans in default, the Default Resolution Group operated by Maximus Federal Services, Inc. This report arrives as the Biden Administration weighs new rules and protections for this vulnerable borrower population.
Conducted through a series of interviews with current and formerly incarcerated borrowers, conversations with legal aid staff and attorneys, and reviews of the Consumer Financial Protection Bureau’s Complaint Database and other government records, the SBPC and NCLC investigation indicates that servicing issues are particularly devastating for incarcerated borrowers due to the unique student loan servicing challenges inherent in the prison environment. The report concludes with several recommendations to the Department of Education that would improve student loan outcomes for incarcerated borrowers.
Read the report: Collection At All Costs: Examining the Intersection of Mass Incarceration and the Student Debt Crisis
Read the press release: New Report Finds Incarcerated Federal Student Loan Borrowers Systematically Denied Access to Student Loan Relief