The ED Website And At Least One Student Loan Servicer Are Providing Students With Incorrect Or Outdated Info On The Public Service Loan Forgiveness Program And COVID19
Washington D.C. (April 1st, 2020) — As student borrowers struggle with their campuses closing, adjusting to distance learning, and figuring out whether they’ll get a refund on student housing, Betsy DeVos and the Department of Education are actively giving out outdated or incorrect information to participants in the Public Service Loan Forgiveness (PSLF) Program.
As of this morning, both Federal Student Aid (FSA) and at least student one loan servicer (PHEAA/FedLoan) list incorrect or outdated information on their websites. Both sites claim that borrowers who have their loan payments put into administrative forbearance during the COVID19 crisis will not have those months counted towards their payments towards PSLF. But neither appear to note that the CAREs Act signed into law by President Trump last Friday suspends a variety of student loan payments, and says those months will count towards participation in the PSLF program. See additional documentation HERE.
In response, Derek Martin, Director of Allied Progress, released the following statement:
“Long before this crisis began, Billionaire Betsy DeVos showed America she had lost control of the student loan servicing industry under her department’s supervision. Now, in the midst of a historic economic and public health crisis, her own agency is giving out bad information to struggling student borrowers. After President Trump waited months to take this crisis seriously, it’s no surprise to see his Education Secretary drop the ball on her responsibility to the public. Student borrowers deserve better from their government.”