The Public Service Loan Forgiveness program was created to provide public service workers with student loan debt relief in exchange for a decade of service in their communities. Unfortunately, since its inception, the program has been mishandled and undermined by the Department of Education and the student loan industry. As a result, millions of public service workers have been cheated out of their right to loan forgiveness guaranteed under federal law.
The SBPC is working with partners to expose mismanagement and abuse in the PSLF program and to advocate for reforms to better protect borrowers working in public service.
Supporting Public Servants:
This report examines the challenges that borrowers with Federal Family Education Loans face when seeking to qualify for Public Service Loan Forgiveness.
The SBPC and AFT expose millions of student loan servicing errors in the PSLF program. The investigation found loans owed by at least 1.3 million borrowers had servicing errors due to the mismanagement of student loan servicing company Affiliated Computer Systems.
The SBPC and AFT expose new instances of mismanagement and abuse in the Public Service Loan Forgiveness Program.
PSLF in the News:
Finlaw, and every other student loan borrower who has made their loan payments while working in public service for a decade, should have the entirety of their student debt canceled as Congress promised.
A new report suggests that Straw is not alone in her experience. Since 2012, the Department of Education has told borrowers more than 50,000 times that their employer is ineligible for PSLF.
Now NPR has learned that the nation’s most powerful consumer watchdog, the Consumer Financial Protection Bureau, launched an effort to fix problems but the Trump administration blocked it from trying to help.
The forgiveness program is just one part of a fundamentally broken student loan servicing system, as the Department of Education’s own inspector general pointed out last week.