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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:
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.
This report details the SBPC and the American Federation of Teacher’s joint investigation into allegations of rampant mismanagement and industry abuses undermining the federal PSLF program.
In a letter to CFPB Director Kathy Kraninger, the SBPC and labor unions, demand the CFPB utilize its authorities to protect student loan borrowers working in public service.
PSLF in the News:
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.
To understand the complexity of the dispute process, it’s important to first understand the complexity of the Public Service Loan Forgiveness Program.
The letter, led by the Student Loan Borrower Protection Center and American Federation of Teachers, was signed by unions that collectively represent more than 17 million workers.