Student Loan Company Accused of Mismanaging Debt Forgiveness Program<br />The company, based in Harrisburg, Pa., holds an exclusive contract with the Education Department to service all loans enrolled in the public service loan forgiveness program<br />and the Teacher Education Assistance for College and Higher Education Grant program, or TEACH, which offers assistance to those who teach in high-need areas.<br />A growing number of consumer watchdogs and government officials have sounded alarms this year about a raft of apparent problems with the government’s public service loan forgiveness program, which promises qualifying workers — including teachers, librarians, police officers<br />and doctors and nurses — a break on their federal student loans in return for a decade of full-time service.<br />The Massachusetts attorney general filed a lawsuit against the Pennsylvania Higher Education Assistance Agency, accusing it<br />of extensive mistakes in handling two federal student loan forgiveness programs for those who work in public service jobs.<br />One of the country’s largest servicers of federal student loans has badly mismanaged debt forgiveness programs for public service workers, significantly<br />raising repayment costs for hundreds of thousands of borrowers, according to a lawsuit filed on Wednesday by the attorney general of Massachusetts.
