Consumer Agency Condemns Abuses in Loan Forgiveness Program<br />The program’s rules are unusually complicated, and require borrowers to have a specific kind of loan (a direct federal loan), to make monthly payments under one type of plan (income-driven repayment)<br />and to work for a qualifying employer (generally a public sector organization, or a 501(c)3 nonprofit organization).<br />Many borrowers “point to a range of student loan industry practices<br />that delay, defer, or deny access to critical consumer protections,” Seth Frotman, the bureau’s student loan ombudsman, wrote in an introduction to the report.<br />“The bureau is committed to monitoring the industry for key issues<br />and illegal practices affecting borrowers who are trying to access key consumer protections so they can continue to give back to their communities.”<br />The Education Department, which oversees the program, encourages borrowers to file certifications to verify<br />that their employment qualifies and to help them track their progress toward meeting program requirements.<br />By STACY COWLEYJUNE 22, 2017<br />The government’s consumer watchdog is adding its voice to a growing chorus of warnings about problems with a federal program<br />that permits people who take public service jobs to have their student loans forgiven after a decade.<br />But more than 250,000 of those borrowers had not made one qualifying monthly loan payment toward the 120 required<br />to have their loans forgiven, according to an Education Department presentation at a conference last year.
