Senators call for probe into student loan program after NPR unearthed major problems

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>Lawmakers have called for an investigation into a troubled student loan cancellation program two weeks after an NPR report revealed the program — designed to help low-income borrowers, and eventually offer them debt cancellation — wasn’t living up to its promise. > >More than 9 million borrowers are currently enrolled in income-driven repayment (IDR) plans, which are designed to help people who cannot afford to make large monthly payments. The plans promise loan cancellation after 20-25 years. But documents obtained by NPR offer striking evidence that these plans have been badly mismanaged by loan servicers and the U.S. Department of Education. > >The documents shed new light on the 2021 revelation that, at the time, 4.4 million borrowers had been repaying for at least 20 years but only 32 had had loans canceled under IDR. > >”A recent NPR investigative report found the IDR program is riddled with problems and mismanagement, even worse than the public previously understood, resulting in millions of borrowers becoming unable to obtain debt cancellation,” a group of Democratic lawmakers wrote in a letter sent Thursday to Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra.

Hrmbee

Ask anyone whose applied for these programs since inception. They could have told you this shit without NPR. Do fucking better. Our government needs to be more proactive rather than reactive.

InanetV

So my job for the last 14 years has been student loans. A big part of the problem is the a revolving door of loan servicers that come in and out of the industry. A person my have there loans change hands several times due to companies deciding they don’t want to service federal loans any more. Data is lost in these transfers and then there is a real uphill battle to get it corrected.

UncleMargret

More reason to love NPR.

starglitter

Lol “the servicers have a thankless job” more like they have been feeding off the service fees while not being held to any performance standard by political appointees in the Dept of Ed.

nphased