Federal agency: Student loan company errors could 'pose serious risks' to borrowers, the economy
Publishing timestamp: 2024-01-05 11:12:12
Summary
The Consumer Financial Protection Bureau has highlighted errors made by student loan servicers, leading the U.S. Department of Education to withhold payments to three companies. These errors include long phone hold times, delays in processing repayment applications, and inaccurate billing statements. The Department of Education is withholding payments from the companies and placing affected borrowers in administrative forbearance. The outstanding education debt in the U.S. exceeds $1.7 trillion, and borrowers are struggling to reach their servicers and enroll in income-driven repayment plans.
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Keywords: personal finance, social issues, business news, personal debt, breaking news, consumer financial protection bureau, nelnet inc, personal loans, breaking news: markets, breaking news: politics, breaking news: investing, united states, student loans, u.s. department of education,