There's strong proof that their loans really have pulled down homeownership rates About 32% of those in their 20s owned a home in 2007, but that's fallen drastically to 21% in 2016. While the poor labor market and memories of the housing bubble certainly played a role, student debt can explain up to 35% of the decline, according to a report from the Federal Reserve Bank of New York released Thursday.If it sounds small, think of it this way: about half of Americans don't go to college and some of those who do aren't dragged down by student debt. The results suggest that the rise in college costs will result in "weaker spending and wealth accumulation among young consumers in the years to come." It's consistent with surveys that have asked those with student debt if it affected their decision to buy a home. Half of those under the age of 35 surveyed by the National Association of Realtors in 2016 said it had delayed their purchase. And 25% told Pew Research Center that student loans had made it harder to buy a home in 2011. Read the Entire Article at CNN...

National Collegiate allegedly lacked the documentation needed to collect on loans in court One of America’s largest student loan creditors has reached a settlement with federal regulators regarding “false” lawsuits against debtors. According to the New York Times, the National Collegiate Student Loan Trusts, which holds $12 billion in student loan debt, will be required to pay a fine of $19 million in refunds and penalties and will potentially have to pay millions more in additional payments and forgiven loans. A debt collector retained by National Collegiate, Transworld Systems, will pay an additional $2.5 million.The settlement comes after the Consumer Financial Protection Bureau (CFPB) accused National Collegiate, which holds loans originally issued by banks, of suing individuals for student loans that they couldn’t prove were actually owed, and filing false and misleading court affidavits across the nation. As part of the settlement, National Collegiate agreed to set aside $3.5 million to make refunds to some 2,000 borrowers, who had made payments after being sued over loans that were legally uncollectable. On some loans, the statute of limitations had already expired; on others, National Collegiate allegedly lacked the documentation necessary to collect on those loans in court. Read the Entire Article at The Inquistr...

Rhode Island just became the fourth state in the nation to make community college free The Promise Scholarship will cover the cost of tuition and fees at the Community College of Rhode Island for new students starting this fall -- regardless of their income. Lawmakers approved the four-year pilot program on Thursday and appropriated $2.8 million for the first year, as part of the state's budget.The governor signed the budget bill moments after the Senate voted on Thursday, breaking a month-long impasse. Read the Entire Article at CNN...

The legal battle over Public Service Loan Forgiveness Continues Public servants who’ve been told they’re eligible for a federal student loan forgiveness program have no guarantee that their debt will be wiped away, the Department of Education reiterated in a legal brief this week. The brief, filed late Wednesday night, is part of a legal battle between four student loan borrowers, the American Bar Association and the government over the Public Service Loan Forgiveness Program (PSLF), an initiative that allows borrowers doing nonprofit or government work to have their federal student loans forgiven after at least 10 years of payments. "You're asking borrowers to enter into a 10 year program without any guarantees."- Natalia Abrams, Executive Director Student Debt CrisisTeachers, social workers and others interested in taking advantage of PSLF often organize their entire financial lives and careers around the program. The only way for them to know whether they’re on track for forgiveness is to file a document known as an employment certification form, or ECF. Borrowers file the ECF form with their servicer over the course of their 10 years of work to determine whether they’re on track for forgiveness. The plaintiffs allege that — after receiving forms indicating they qualified and were on track for forgiveness — the government improperly reversed course. In the brief filed Wednesday, lawyers for the Department write that the ECF forms were only an initial determination and that borrowers shouldn’t rely on the form as a guarantee their loans will be forgiven after 10 years of payments. Read the Entire Article at MarketWatch...

Consumer Financial Protection Bureau Supervision Finds Some Student Loan Mortgage Servicers Illegally Fail to Provide Protections to Borrowers Washington, D.C. – The Consumer Financial Protection Bureau (CFPB) today announced that its recent supervisory work has found that some student loan and mortgage servicers are violating the law by failing to provide struggling borrowers with legal protections. CFPB examiners found that some student loan servicers failed to refund charges imposed on borrowers who had been wrongly denied the right to defer payments while enrolled in school. The report also found that some mortgage servicers did not deliver the required foreclosure protections to borrowers seeking to save their homes, mishandled escrow accounts, and sent incomplete bills. The report also announced that non-public supervisory activities have led to the recovery of about $6.1 million for 16,000 consumers harmed by auto loan originators. “We found that some mortgage and student loan servicers are violating the law by failing to provide protections to borrowers,” said CFPB Director Richard Cordray. “Their slipshod practices are putting borrowers at risk of financial failure and we will hold them accountable." Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, the CFPB has authority to supervise banks and credit unions with more than $10 billion in assets and certain nonbanks. These include mortgage companies, private student lenders, payday lenders, and others defined as “larger participants.” Today’s report, the 15th edition of Supervisory Highlights, covers supervisory activities generally from September-December 2016, and shares observations in the areas of student loan servicing, mortgage servicing, mortgage origination, and fair lending. Student Loan Servicing Student loan servicers are the primary point of contact about loans for the more than 44 million Americans with student debt. It is a Bureau priority to end illegal practices in student loan servicing. Previously, the Bureau reported that borrowers encounter servicing problems driven by incomplete, inaccurate, or untimely reporting of student data. This can cost some borrowers hundreds of dollars or more. In February, the CFPB warned student loan borrowers to take steps to protect themselves from costly student enrollment status data errors. The Department of Education has also warned that these errors can lead to higher loan costs for borrowers and may contribute to student loan delinquency and defaults. In today’s report, Bureau examiners found that student loan servicers: Routinely acted on flawed information: Most student loan borrowers have a right to postpone payments, called a deferment, while they are enrolled in school. But CFPB examiners found that one or more student loan servicers routinely acted on incorrect information about whether the borrower was enrolled in school. This faulty information was in student data reports used to manage millions of borrowers’ accounts, and was provided by National Student Clearinghouse, an enrollment data reporting company. Failed to reverse charges wrongly imposed on borrowers in school: Because of data errors, one or more student loan servicers routinely failed to reverse certain charges even after it knew it had wrongly ended a deferment. These charges included improper late fees and capitalization of unpaid interest, which occurs when interest that accumulates on a student loan is added to the principal balance.Mortgage Servicing Mortgage servicers collect payments from the mortgage borrower and forward those payments to the owner of the loan. They typically handle customer service, collections, loan modifications, and foreclosures. Supervision continues to see serious issues for consumers seeking alternatives to foreclosure, or loss mitigation, at certain servicers. Issues identified during recent CFPB examinations include problems with foreclosure protections, premature foreclosure filings,  mishandling of escrow accounts, and incomplete periodic statements. Bureau examiners found one or more servicers: Kept borrowers in the dark on foreclosure alternatives: One or more servicers failed to identify the additional documents and information borrowers needed to submit to complete a loss mitigation application to avoid foreclosure. They then denied the applications for not including those documents. Supervision directed these servicers to enhance policies, procedures, and monitoring to address the issue. Prematurely launched the foreclosure process: Servicers cannot take certain steps toward foreclosure once they receive a complete loss mitigation application from a borrower more than 37 days before a foreclosure sale. For instance, servicers cannot make first notice of a foreclosure if a borrower has submitted a complete application for a loan modification or other foreclosure alternative that is still pending review. Bureau examiners found that one or more servicers failed to properly classify applications as complete after receiving the information, and failed to give required foreclosure protections to those consumers. Mishandled escrow accounts: One or more servicers used funds from escrow accounts to pay insurance premiums on unrelated loans. This created shortages in the escrow account and forced higher monthly payments onto consumers. Supervision directed the servicer to give redress to affected consumers, and adopt policies and procedures to ensure that insurance payments are made properly from escrow accounts. Issued incomplete periodic statements: Servicers must provide regular statements that include the amount and due date of the next payment; a breakdown of payments by principal, interest, fees, and escrow; and recent transactions. Examiners found one or more servicers used vague language like “Misc. Expenses” and “Charge for Service” when describing certain costs. These insufficient descriptions failed to comply with the rule. Supervision directed the servicer to modify its descriptions to help consumers understand their fees and charges.Other Highlights In the lead-up to the financial crisis, many consumers ended up in risky mortgages because lenders did not check to see if they could afford to pay back the loan. Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, lenders must make a reasonable effort to figure out if a consumer can repay the mortgage before making the loan. Today’s report looks at how CFPB examiners assess compliance with the Ability-to-Repay rule, including requirements on how a lender verifies a consumer’s ability to repay a mortgage loan. This includes whether a creditor’s decision relies on verified assets and not income, and whether it can be based on the size of the down payment for a consumer who otherwise lacks verified income or assets. Today’s report also notes that CFPB examiners alerted one or more companies to spikes in complaint volume, prompting the companies to develop remedies. It also discusses the CFPB’s continued development and implementation of a program to directly examine key service providers to help reduce risks to consumers when a company outsources certain activities to those providers. In today’s report, the CFPB also reminds companies that creating incentives for employees and service providers to meet sales and other business goals can lead to consumer harm if those incentives are not properly managed. In addition, the report includes details about updated and expanded publicly available surname data from the U.S. Census Bureau for use in models that may be combined with geography data in CFPB analysis of fair lending practices. The report highlights that non-public supervisory activities have led to the recovery of about $6.1 million for 16,000 consumers harmed by illegal practices by auto loan originators. The CFPB’s recent supervisory activities led to or supported five recent public enforcement actions, resulting in over $39 million in consumer remediation and another $19 million in civil money penalties. Today’s report shares information industry can use to comply with federal consumer financial law. In cases where CFPB examiners find problems, they alert the company and outline necessary remedial measures. This may include paying refunds or restitution, or taking actions to stop illegal practices, such as new policies or improved training or monitoring. When appropriate, the CFPB opens investigations for potential enforcement actions. Today’s edition of Supervisory Highlights is available at:http://files.consumerfinance.gov/f/documents/201704_cfpb_Supervisory-Highlights_Issue-15.pdf ### The Consumer Financial Protection Bureau is a 21st century agency that helps consumer finance markets work by making rules more effective, by consistently and fairly enforcing those rules, and by empowering consumers to take more control over their economic lives. For more information, visit consumerfinance.gov.

It is past time for the king of “you’re fired” to fire Navient and terminate contracts with all loan servicers who engage in deceptive and fraudulent practices in an effort to deceive borrowers. By: Natalia Abrams Executive Director, Student Debt Crisis Tuesday, April 25th, marks the fifth year since the total outstanding balance for the 44 million Americans who have student loan debt has reached a collective $1 trillion. Since then, that balance has grown by more than $400 billion, making student loan debt the second-highest source of consumer debt in America, second only to mortgages. Advocates, borrowers and students across the nation commemorate April 25th to bring attention to this ever growing crisis. Central to the problem of the student debt crisis are failures by student loan servicing companies with no incentive to help borrowers. Coupled with a complete lack of oversight from the Department of Education, America now faces a system that allows corporations to rake in billions of dollars in profits off the backs of student loan borrowers. The nation’s largest student loan servicer, Navient, formerly Sallie Mae is currently facing several lawsuits brought by the Consumer Financial Protection Bureau (CFPB), and a host of other state attorneys general nationwide. For decades, companies like Navient and Sallie Mae were able to bully and financially ruin millions of student loan borrowers through predatory practices. In legal files for the recent lawsuits, Navient explicitly stated that “there is no expectation that the servicer will act in the interest of the consumer.” In fact, the suits highlight a long history of shameful business practices, including: misapplying payments, steering borrowers towards costly repayment options and destroying the credit scores of veterans. With no motivation to help borrowers out, Navient has instead made it harder to repay. It is past time for the king of “you’re fired” to fire Navient and terminate contracts with all loan servicers who engage in deceptive and fraudulent practices in an effort to deceive borrowers. Borrowers are also under assault from those whose job it is to help them; not only from student loan servicers like Navient, but from Trump’s Department of Education itself. Under the brief tenure of controversial Education Secretary Betsy DeVos, the Department has taken major steps in rolling back Obama-era protections for student loan borrowers. DeVos’s actions now allow for poor performing and predatory student loan servicers to access high-paying contracts with the federal government, despite years of abuses by these companies. Also under DeVos, the department rescinded a directive that prohibited costly fees to the tune of 16%, being applied to defaulted FFEL (Federal Family Education Loans) student loans. The result of this action is that the most vulnerable student loan borrowers will face unfair additional fees, making already difficult financial situations even harder for struggling student loan borrowers. Student loan debt has tipped to $1.4 trillion. Student Debt Crisis and other groups have joined together to send letters to the Department of Education asking them to fire Navient as a servicer of federal student loans. Over 10,000 people have signed on asking for the same thing in order to protect the hard-fought protections to borrowers over the past few years. Beyond firing Navient, there are a number of solutions to the ever-growing student debt crisis that consumer advocates have supported to help ease the burden on student loan borrowers. To begin with, lawmakers should allow for refinancing of both federal and private student loans, allowing borrowers to take advantage of historically low interest rates and lower their monthly payments. Secondly, we should simplify and strengthen existing repayment plans, such as Income-based Repayment and the Public Service Loan Forgiveness program. Next, student loans should be afforded broad consumer protections that other types of consumer financial products enjoy and, finally, as a spokeswoman for Navient recently affirmed, bankruptcy protections should be extended to all student loans. Student Debt Crisis is a non-profit (501c4) organization dedicated to fundamentally reforming student debt and higher education loan policies.

By: Student Debt Crisis It has been five years since outstanding student loan debt in America reached $1 Trillion. Higher education and student loan advocates refer to this ominous day as “1-TDay”. To mark this dubious date, we present you with Five Student Loan Facts You Need to Know About: Student loan debt in America now exceeds $1.4 Trillion. That is a 14 with NINE zeros after it! Over 44 Million Americans of all ages and backgrounds have student loan debt and 25% of those people are in delinquency or default and struggling to make their payments. All of this debt has taken it’s toll on the economy. Americans with student debt are having trouble purchasing homes, creating small businesses and even starting families. Secretary of Education, Betsy DeVos is a threat to student loan borrowers everywhere! During her brief tenure, the Department of Education has rescinded the Obama-era directive preventing additional fees from being tacked on to the loan balances of struggling borrowers. On top of that, a new DeVos memo will allow for poor performing and often predatory student loan servicing companies to continue to have access to high-paying contracts with the federal government. Simply put, big corporations are making more profits and student loan borrowers continue to pay the price. The nation’s largest student loan servicer, Navient (formerly Sallie Mae), is facing THREE lawsuits by federal watchdog the Consumer Financial Protection Bureau (CFPB) as well as state attorneys general across the nation. The company’s deceptive, fraudulent and illegal practices include misapplying payments, steering borrowers away from lower monthly payments, failure to communicate vital deadlines and shamefully destroying the credit scores of disabled veterans. The Public Service Loan Forgiveness Program is set to begin on October 1st. Qualifying borrowers with federal direct loans, who are in the correct repayment program and also have at least 10 years of public service or nonprofit work experience can submit this form to see if they are eligible for loan forgiveness. Unfortunately, the Department of Education recently rescinded on that promise for some borrowers. Nearly half a million Americans may lose their student loan forgiveness due to the Department’s unfair efforts to redefine who qualifies for the program. There is a bright side! Senator Bernie Sanders (I-VT) recently introduced the College for All Act. This plan not only eliminates tuition at public colleges for families making up to $125,000, but also addresses the concerns of Americans currently impacted by student debt with reforms that cut all student loan interest rates in half, provide loan refinancing options for millions of borrowers and ensure the federal government never profits from the student loans again. It is an uneasy and uncertain time for 44 million Americans with student debt, however, there is hope on the horizon. Advocates, allies and passionate supporters are working hard to ensure the next five years result in solutions to end the student debt crisis. ** If you feel that you have been wrongly denied for Public Service Loan Forgiveness, or have a student loan issue, submit a complaint to the Consumer Financial Protection Bureau (CFPB). Student Debt Crisis is a non-profit (501c4) organization dedicated to fundamentally reforming student debt and higher education loan policies.

CONSUMER FINANCIAL PROTECTION BUREAU MONTHLY SNAPSHOT SPOTLIGHTS STUDENT LOAN COMPLAINTS WASHINGTON, D.C. – Today the Consumer Financial Protection Bureau (CFPB) released a monthly complaint snapshot highlighting consumer complaints about student loans. The snapshot shows that both private and federal student loan borrowers nationwide report persistent servicing breakdowns that may sideline their path to repayment. This month’s report also highlights trends seen in complaints coming from Nevada. As of April 1, 2017, the Bureau had handled approximately 1,163,200 consumer complaints across all products. “Student loan servicers play an important role in helping millions of people manage the loans they take out to pursue an education,” said CFPB Director Richard Cordray. “Unfortunately, borrowers continue to report difficulties and setbacks as they try to work with their servicers to manage their loan debt.” The Monthly Complaint Report can be found at: http://files.consumerfinance.gov/f/documents/201704_cfpb_Monthly-Complaint-Report.pdf Category Spotlight: Student Loans At $1.4 trillion, student loan debt represents the U.S.’s second largest debt market behind mortgages. More than 44 million student loan borrowers rely on the companies servicing their loans to manage all aspects of repayment, including providing borrowers with available repayment options when they are struggling to repay their loans. In September 2015, the Bureau released a report outlining widespread servicing failures and sloppy, patchwork practices reported by both federal and private student loan borrowers. As of April 1, 2017, the Bureau had handled approximately 44,400 student loan complaints from consumers. Some of the findings in the snapshot include: Consumers complain about poor information from and sloppy practices by servicers: Of all the complaints the Bureau receives about student loans, over half—64 percent—are about problems consumers experience when dealing with their student loan servicer. Consumers who reach out to their servicer complain they are not informed about options that would allow them to continue repaying their loan, such as income-driven repayment plans. Rather, consumers complain that their servicer directs them into plans that suspend repayment and cause the interest on their loans to pile up. Consumers also complain that their monthly student loan payments are misapplied by the servicer, which the Bureau believes can cause a range of problems including negative credit reporting and loss of certain loan benefits, such as cosigner release for private student loans. Consumers complain about difficulty enrolling and staying in an income-driven repayment plan: Consumers complain about processing delays and inaccurate denials when submitting an income-driven repayment plan application to their servicer. These complaints include documents being lost by the servicer, application processing times spanning several months, missed payment towards loan forgiveness, and unclear guidance when enrolling into a new income-driven repayment plan. Additionally, consumers complain of receiving insufficient information from their servicers to meet recertification deadlines for their income-driven repayment plan. Consumers report confusion about their progress toward Public Service Loan Forgiveness programs: Consumers express concerns about their standing in Public Service Loan Forgiveness and other loan forgiveness programs. These borrowers complain that after years of making payments, they learn that their loans are not enrolled in a qualifying repayment plan, despite borrowers telling their servicers that they were pursuing Public Service Loan Forgiveness. Other borrowers complain that their servicer did not explain that consolidating their loans would wipe out all previous progress made towards loan forgiveness. Companies with the most student loan-related complaints: The three companies that the Bureau has received the most average monthly student loan complaints about are Navient Solutions, LLC, Fedloan Servicing/AES, and Nelnet. The Bureau has also reported on consumer complaints to highlight the unique challenges that certain populations of consumers with student loan debt face, including older Americans, servicemembers, veterans with disabilities, and previously defaulted borrowers. National Complaint Overview As of April 1, 2017, the CFPB had handled approximately 1,163,200 complaints nationally. Some of the findings from the statistics being published in this month’s snapshot report include: Complaint volume: For March 2017, debt collection was the most-complained-about financial product or service. Of the approximately 28,000 complaints handled in March, there were 8,711 complaints about debt collection. The second most-complained-about consumer product was credit reporting, which accounted for 5,498 complaints. Mortgages were third most-complained-about financial product or service, accounting for 3,965 complaints. Product trends: In a year-to-year comparison examining the three-month time period of January to March, student loan complaints showed the greatest increase—325 percent—of any product or service. The Bureau received 773 student loan complaints between January and March 2016, while it received 3,284 complaints during the same time period in 2017. Part of this year-to-year increase can be attributed to the CFPB updating its student loan complaint form to accept complaints about federal student loan servicing, starting in late February 2016. The Bureau also initiated an enforcement action against a large student loan servicer during the time period covered by this report. State information: Montana, Georgia, and Wyoming experienced the greatest year-to-year complaint volume increases from January to March 2017, versus the same time period 12 months before; with Montana up 54 percent, Georgia up 46 percent, and Wyoming up 45 percent. Most-complained-about companies: The top three companies that received the most complaints from November 2016 through January 2017 were Navient Solutions, LLC, Equifax, and Experian. Geographic Spotlight: Nevada This month, the CFPB highlighted complaints from Nevada and the Las Vegas metro area.  As of April 1, 2017, consumers in Nevada have submitted 14,600 of the 1,163,200 complaints the CFPB has handled. Of those complaints, 10,800 came from consumers in the Las Vegas metro area. Findings from the Nevada complaints include: Rate of debt collection complaints similar to the national average: Complaints related to debt collection accounted for 29 percent of all complaints submitted by consumers from Nevada. This is slightly higher than the rate of 27 percent at which consumers nationally submit debt collection complaints to the Bureau. Rate of mortgage complaints mirrors the national average: Complaints related to mortgages accounted for 23 percent of all complaints submitted by consumers from Nevada, which is identical to the national rate of mortgage complaints submitted. Most-complained-about companies: Wells Fargo, Experian, and Equifax were the most-complained-about companies from consumers in Nevada. The Dodd-Frank Wall Street Reform and Consumer Protection Act, which created the CFPB, established consumer complaint handling as an integral part of the CFPB’s work. The CFPB began accepting complaints as soon as it opened its doors in July 2011. It currently accepts complaints on many consumer financial products, including credit cards, mortgages, bank accounts and services, student loans, vehicle and other consumer loans, credit reporting, money transfers, debt collection, and payday loans. In June 2012, the CFPB launched its Consumer Complaint Database, which is the nation’s largest public collection of consumer financial complaints. When consumers submit a complaint they have the option to share publicly their explanation of what happened. For more individual-level complaint data and to read consumers' experiences, visit the Consumer Complaint Database at: www.consumerfinance.gov/complaintdatabase/. Company-level complaint data in the report uses a three-month rolling average of complaints sent by the Bureau to companies for response. This data lags other complaint data in this report by two months to reflect the 60 days companies have to respond to complaints, confirming a commercial relationship with the consumer. Company-level information should be considered in the context of company size. To submit a complaint, consumers can: Go online at www.consumerfinance.gov/complaint/ Call the toll-free phone number at 1-855-411-CFPB (2372) or TTY/TDD phone number at 1-855-729-CFPB (2372) Fax the CFPB at 1-855-237-2392 Mail a letter to: Consumer Financial Protection Bureau, P.O. Box 4503, Iowa City, Iowa 52244 Additionally, through “Ask CFPB,” consumers can get clear, unbiased answers to their questions at consumerfinance.gov/askcfpb or by calling 1-855-411-CFPB (2372). ### The Consumer Financial Protection Bureau is a 21st century agency that helps consumer finance markets work by making rules more effective, by consistently and fairly enforcing those rules, and by empowering consumers to take more control over their economic lives. For more information, visit consumerfinance.gov.

Senate Democrats Demand Fair and Consistent Treatment of Student Loan Borrowers in Public Service Senators: “Our nation’s student loan borrowers who uphold their commitments expect the federal government to do the same.” Recent announcements by the U.S. Department of Education suggest some borrowers can’t rely on their prior notices about debt relief – LINK (Washington, D.C.) – Led by Senators Claire McCaskill (D-MO), Kirsten Gillibrand (D-NY), Bill Nelson (D-FL), and Patty Murray (D-WA), 36 Senators today sent a letter to Secretary of Education Betsy DeVos expressing concern over announcements that borrowers may not be able to rely on notices they have previously received about their eligibility for Public Service Loan Forgiveness (PSLF). “Our nation’s student loan borrowers who uphold their commitments expect the federal government to do the same,” wrote the Senators. “Members of our military, first responders, teachers, social workers, public defenders, and many other honorable public servants across the country are dedicating 10 or more years of their lives to help their communities in return for the basic promise of relief on their student loan debt.” “It is unacceptable for the Department to have told students they may rely on PSLF to help pay their student loans, only to have that assurance suddenly revoked. Borrowers who have been told in error that their employers qualify for PSLF should at a minimum be grandfathered-in for the period they were previously approved, even if the Department intends to change its determination about qualifying employment going forward.” Following recent reporting by the New York Times and others about the uncertainty created by the Department’s latest court filings, many student loan borrowers were concerned and confused about their future financial obligations even while they work to serve their country or community in positions of public service. As of December 2016, more than 550,000 borrowers have submitted at least one approved form to certify their employment. However, roughly a third of all submitted employment certification forms have been denied. The letter requests Secretary DeVos further streamline the application process and make it more transparent to reduce the confusion and inconsistency for PSLF borrowers, such as issuing clear guidance about eligible organizations. The letter also calls for improving the notices sent to PSLF applicants, including clear instructions on how to appeal decisions about a borrower’s eligibility. In addition to Senators McCaskill, Gillibrand, Nelson, and Murray, the letter was signed Senators Schumer (D-NY), Leahy (D-VT), Feinstein (D-CA), Wyden (D-OR), Durbin (D-IL), Reed (D-RI), Cantwell (D-WA), Menendez (D-NJ), Cardin (D-MD), Sanders (I-VT), Casey (D-PA), Klobuchar (D-MN), Whitehouse (D-RI), Shaheen (D-NH), Bennet (D-CO), Franken (D-MN), Coons (D-DE), Blumenthal (D-CT), Baldwin (D-WI), Donnelly (D-IN), Hirono (D-HI), King (I-ME), Kaine (D-VA), Warren (D-MA), Heitkamp (D-ND), Markey (D-MA), Booker (D-NJ), Van Hollen (D-MD), Hassan (D-NH), Warner (D-VA), Carper (D-DE), and Brown (D-OH). The text of the full letter is below. April 6, 2017 The Honorable Betsy DeVos Secretary of Education U.S. Department of Education 400 Maryland Avenue, SW Washington, DC 20202 Dear Secretary DeVos: We write with great concern over the U.S. Department of Education’s (“Department”) lack of consistent, transparent, and fair treatment of student loan borrowers participating in the Public Service Loan Forgiveness (“PSLF”) program. Our nation’s student loan borrowers who uphold their commitments expect the federal government to do the same. Members of our military, first responders, teachers, social workers, public defenders, and many other honorable public servants across the country are dedicating 10 or more years of their lives to help their communities in return for the basic promise of relief on their student loan debt. Many of these individuals have decided to borrow for their education explicitly because the option to receive relief on their debt allows them to afford the lower pay and benefits that are associated with the public sector, and in our rural, tribal, and other under-resourced communities. Recently, the Department has suggested that some individuals may not be able to rely on the prior notices and advice they have received from the agency and its designated contractor. It is unacceptable for the Department to have told students they may rely on PSLF to help pay their student loans, only to have that assurance suddenly revoked. Borrowers who have been told in error that their employers qualify for PSLF should at a minimum be grandfathered-in for the period they were previously approved, even if the Department intends to change its determination about qualifying employment going forward. Additionally, the Department has created a great deal of confusion for applicants who are employed by non-profit organizations that provide certain types of public service, but are not categorized under Section 501(c)(3) of the Internal Revenue Code. To clarify this confusion, we request that the Department further define and formally clarify the types of eligible employers that qualify for PSLF. These include, but are not limited to, organizations working in the areas of emergency management, military service, public safety, law enforcement, public interest law services, early childhood education, service for individuals with disabilities and the elderly, public health, public education, and school-based services. This guidance should be publicly accessible in a prominent location and include real-world examples of organizations that qualify in each of these fields. And, when the Department receives requests to approve new employers it has not previously considered, these borrowers should receive a timely response. PSLF borrowers also deserve the highest standards of customer service when making progress toward their debt relief. There are several steps that should be taken to improve the user experience with PSLF. When the Department or its designated contractor issues denials of employment certification to borrowers, these communications should give borrowers clarity and support. Denials should state the specific reasons that an employer or form has been denied, clearly list the options and process for a borrower to appeal the decision, and specifically inform the borrower that they may work with their employer to provide documentation to support a conclusion that their employment qualifies. Finally, the Department should act swiftly to fully digitize the PSLF employment certification and application process, including allowing borrowers and employers to digitally sign their forms. The Government Paperwork Elimination Act, signed nearly two decades ago, called for federal agencies to increase their use of electronic forms, electronic filing, and electronic signatures to conduct official business with the public. Although it is positive that borrowers can digitally upload many forms and documents on the web with their servicers, PSLF forms have limited functionality. Currently, all borrowers must print the employment certification form, manually sign it, and also have it manually signed by their employer. Furthermore, online submission of a scanned form is only an option for borrowers who have existing accounts with the Department’s designated contractor. Borrowers with other student loan servicers should not be required to mail or fax their forms. In an era where fax usage and availability has declined significantly, borrowers should not be asked to fax information to loan servicers when modern technology is readily available to solve these problems. These steps would provide PSLF applicants with additional certainty and transparency as they work to meet their obligations. Given that borrowers may first become eligible for full forgiveness of their remaining balances through PSLF on September 2, 2017 of this year—less than six months away—we request your response to the policies and reforms to the Department’s implementation of the PSLF program as expeditiously as possible and no later than April 27, 2017. Thank you for your attention to this matter. ###

The idea that approvals can be reversed at any time, with no explanation, is chilling for borrowers. More than 550,000 people have signed up for a federal program that promises to repay their remaining student loans after they work 10 years in a public service job. But now, some of those workers are left to wonder if the government will hold up its end of the bargain — or leave them stuck with thousands of dollars in debt that they thought would be eliminated. In a legal filing submitted last week, the Education Department suggested that borrowers could not rely on the program’s administrator to say accurately whether they qualify for debt forgiveness. The thousands of approval letters that have been sent by the administrator, FedLoan Servicing, are not binding and can be rescinded at any time, the agency said. "The program’s rules are complex. Only certain types of federal loans qualify, meaning that many borrowers need to restructure their debt to make it eligible — and the Education Department has done little to clarify gray areas."- Natalia Abrams, Executive Director of Student Debt Crisis Read the Entire Article at The New York Times...