•  
  •  
 

Authors

Andrew Goring

Abstract

This Note identifies a timely issue with student loans and discusses potential remedies. Under the Public Service Loan Forgiveness program, borrowers of federal student loans who make 120 qualifying monthly payments while working in public service may have their loans forgiven. When a loan is forgiven, the borrower no longer has to pay the remaining balance of the debt. Since both the prevalence of student loans and the average student debt are increasing, loan forgiveness is an important opportunity for borrowers under the crushing debt of student loans. However, a Consumer Financial Protection Bureau report found a rising problem: Loan servicers are leading borrowers to believe that borrowers’ monthly payments qualify for loan forgiveness, when they in fact do not. Right now, the only solution for those borrowers is to restart the clock on their ten years of public service. This Note determines that there are several causes of action that could be brought against student loan servicers in order to offer relief to borrowers who believed their loans would be forgiven.

Share

COinS