ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / ECONOMY & WORK

Public Service Loan Forgiveness Has Become a Grueling Saga of Bureaucratic Hurdles for Borrowers

The borrowers find themselves caught in a web of delays and misinformation.
PUBLISHED MAR 1, 2024
Cover Image Source: Pexels/Mikhail Nilov
Cover Image Source: Pexels/Mikhail Nilov

The burden of student loans in the United States has long been a contentious issue, with millions of borrowers grappling with the weight of debt for years after completing their education. For those like Abigail Linn, a kindergarten teacher, and her husband Jason Evey, the journey toward debt relief through the Public Service Loan Forgiveness (PSLF) program has become a grueling saga of bureaucratic hurdles and unanswered questions.

Student loan borrowers and advocates gather for the People's Rally To Cancel Student Debt | Getty Images | Photo by Jemal Countess
Student loan borrowers and advocates gather for the People's Rally To Cancel Student Debt | Getty Images | Photo by Jemal Countess

Linn, who has been diligently making payments on her student loans throughout her years of service in the education sector, believed she was on track to have her remaining debt forgiven under the PSLF program. However, a discrepancy in her payment count has left her and her husband frustrated and confused. Despite Evey's repeated attempts to rectify the issue by contacting MOHELA, their loan servicer, the problem remains unresolved. The couple, like many others, finds themselves caught in a web of delays and misinformation, unsure of when or if the relief they've been promised will materialize.

The challenges faced by Linn and Evey are not isolated incidents. According to a report by the Student Borrower Protection Center (SBPC) and the American Federation of Teachers (AFT), MOHELA's handling of PSLF applications has resulted in a backlog of over 800,000 forms awaiting processing. This surge in applications coincided with the Biden administration's pledge to reform the program, further highlighting the urgent need for streamlined processes and improved communication channels between borrowers and loan servicers.

Image Source: Photo by Tara Winstead | Pexels
Image Source: Photo by Tara Winstead | Pexels

MOHELA's approach to PSLF, as outlined in the report, has raised concerns among advocates and borrowers alike. The organization's apparent reluctance to approve applications, coupled with a contractual incentive to deny them, paints a troubling picture of a system that prioritizes profit over the well-being of borrowers. Despite the administration's efforts to streamline the forgiveness process, borrowers like Linn continue to face unnecessary obstacles in their pursuit of debt relief.

Carolina Rodriguez, director of the Education Debt Consumer Assistance Project, has witnessed firsthand the toll these obstacles take on borrowers. Many find themselves in limbo for months, unsure of whether their applications will be approved or denied. The lack of trust in the system only compounds the stress and uncertainty faced by those seeking relief.

While MOHELA insists that it is committed to assisting borrowers, its actions speak louder than words. Reports of lengthy call wait times, incorrect billing, and misinformation from customer service representatives paint a bleak picture of an organization failing to fulfill its obligations. For borrowers like Evey, the frustration is palpable, with each call to MOHELA yielding little to no progress toward resolution.

College students listen to a lecture at the University of California at San Diego campus. (Photo by David Butow/Corbis via Getty Images)
College students listen to a lecture at the University of California at San Diego campus. (Photo by David Butow/Corbis via Getty Images)

The issue extends beyond PSLF, with millions of borrowers experiencing servicing issues since the resumption of student loan payments. MOHELA's emphasis on self-service options, while ostensibly aimed at alleviating call center congestion, has only served to exacerbate the problem. Borrowers, already overwhelmed by the complexities of the student loan system, find themselves navigating convoluted websites in search of answers that should be readily available through direct communication with servicers.

Despite assurances from the Department of Education and servicer trade groups, the reality for borrowers remains bleak. Scott Buchanan of the Student Loan Servicing Alliance defends the push toward self-service options as a means of improving customer service, but for borrowers like Linn and Evey, the disconnect between rhetoric and reality is glaring. As they continue to navigate a system rife with obstacles and delays, the promise of debt relief grows increasingly distant.

MORE ON MARKET REALIST
The sharks did not expect the product to taste as good as it did, considering what it was made from.
4 hours ago
The designer was also commissioned by top brands and worked for the royal family.
5 hours ago
The host had a look of bewilderment on his face which was absolutely hilarious.
6 hours ago
Things did not seem to be going well for the entrepreneur due to her high energy.
9 hours ago
The guest might have had high expectations, but they were quickly brought down to earth.
10 hours ago
The contestant was unable to contain her excitement and hugged the model.
1 day ago
Two of the players got it right, and while the player who lost didn't mind, fans were not satisfied.
1 day ago
Lisa celebrated her birthday in style with a perfect two-card guess to win the big prize.
1 day ago
Rick Harrison did what he could to console the guest who said that he had lost faith in NASCAR.
1 day ago
Both the guest and the expert were fascinated by how well the automaton worked.
2 days ago
One of the entrepreneurs broke down in tears, explaining all the struggles they had to go through.
2 days ago
She couldn’t believe it when her doll was appraised at a five-figure sum, and laughed in disbelief.
2 days ago
Ken Jennings truly has embraced "Jeopardy!" in every way possible at this point.
2 days ago
The comedian was impressed by the simplicity of the product and amused by the pitch.
3 days ago
Harrison usually makes smart deals on the show, but this vintage car buy turned into a costly mistake.
3 days ago
Had she started the game in a better way, she might have won the five-figure prize money.
3 days ago
Barbara Corcoran made the exact same offer, and she wasn't happy about being rejected.
4 days ago
The guest believed that it was worth a modest amount of money, but that was clearly not the case.
4 days ago
With James Holzhauer in the lead, Amy Schneider and Andrew He decided to joke around.
4 days ago
Barbara Corcoran told the founders that she had never seen Greiner so passionate.
4 days ago