Today, organizations representing nearly nine million working people have drawn a line in the sand: we expect these companies to deliver debt relief to their customers and we will fight any effort to defraud or deceive public service workers.” “For more than a decade, the student loan industry has fought tooth and nail to block public service workers from the promise of loan forgiveness. ![]() Student Borrower Protection Center Executive Director Mike Pierce: The least the student-loan profiteers should do is provide accurate guidance on loan forgiveness.” But today, the cost of college forces many students and families to forego their education goals or be trapped in a lifetime of debt. “No matter what we look like, where we live, or what’s in our wallets, all of us should be able to pursue our dreams at an affordable college or university. National Education Association President Becky Pringle: We cannot allow loan behemoths like Navient and Sallie Mae to continue to undermine these waivers through a policy of benign neglect aimed at padding their own bottom lines.” Now is the time for action on PSLF, but instead of pushing for relief, some big banks and financial institutions have sat idly by, leaving borrowers in the lurch when they should be seeing reduced or zero balances. DeVos were a ray of light for hundreds of thousands of public service workers struggling under the yoke of student debt that should have been discharged years ago. “Both the Biden Administration’s reforms and the landmark settlement in Weingarten v. Today’s letter highlights the urgent need for law enforcement scrutiny of these companies given the industry’s deplorable track record of misleading FFELP borrowers and blocking them from accessing PSLF.Ī set of exhibits documenting FFELP loan holders continuing to mislead borrowers and provide bad information related to the ongoing PSLF waiver is available here.Īmerican Federation of Teachers President Randi Weingarten: Together, the 25 companies hold more than $122 billion in older federal student loans originated under the now-defunct Federal Family Education Loan Program (FFELP).Īs public service workers with older federal student loans seek to take advantage of the new time-limited opportunity that the Department announced in October to receive credit toward PSLF, these borrowers must have access to timely, accurate, and complete information from the student loan companies that manage their loans. A review of industry practices by the SBPC found that many of these companies are currently providing misleading and outdated information to borrowers that could derail efforts to access relief under the recently revamped PSLF program. "Once you start to rack up numbers like that," McCann said about the mounting lawsuits, "it definitely seems worthy of concern.Decem| WASHINGTON, DC - Today the Student Borrower Protection Center (SBPC) and a coalition of the nation’s largest unions representing millions of public service workers sent letters to 25 large student loan companies demanding immediate action to ensure successful implementation of the Department of Education’s recent overhaul of the Public Service Loan Forgiveness (PSLF) program. "I've been teaching 18 years and I still don't make $40,000 - and now I have to start all over."įive states (Illinois, Pennsylvania, Washington, California and Mississippi) and the Consumer Financial Protection Bureau have also sued the company for misleading borrowers. Navient never told her that her loan didn't qualify for the program, or explained to her the simple process through which she could become eligible." Again, that was the first time she learned that she didn't qualify because she had the wrong type of federal student loan - like Hyland, Baker also had a Federal Family Education Loan. Toward the end of that decade of payments, Baker tried to certify her forgiveness. ![]() Well, you can't apply until 2017,'" Baker said, about her conversations with Navient. ![]() "Year after year I would tell them, 'Now I'm going after public service loan forgiveness,' and they'd say, 'OK.
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