Broken Promises: Teachers Sue U.S. Over Student Loans That Weren’t Forgiven

Debbie Baker thought she qualified for a federal program that helps teachers such as her, as well as nurses, police officers, librarians and others. The Department of Education program forgives their federal student loans if they make their payments for 10 years and work in public service.

For 10 years, Baker, who was a public school teacher in Tulsa, Okla., checked in with loan servicing companies and was told she was on track.

“I said, ‘I’m qualifying for public service loan forgiveness,’ and they said, ‘OK, great,’ ” she says.

But it turns out that her $76,000 in student loans didn’t get forgiven. Baker was finally told she was in the wrong type of loan. If she’d known that at the beginning, she could have switched loans and ended up qualifying. But she says nobody ever told her.

Full story at npr.org

Student Loan Forgiveness Program Approval Letters May Be Invalid, Education Dept. Says

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thousands of approval letters that have been sent by the administrator, FedLoan Servicing, are not binding and can be rescinded at any time, the agency said.

Full story of invalid student loan approval letters at the New York Times