FedLoan Servicing, one of the U.S. Dept. of Education’s federal student loan servicers, has been in the news lately due to its messy rollout of the Revised-Pay-As-You-Earn (REPAYE) plan. Administrative and bureaucratic issues led to delays, processing errors, and other problems for thousands of federal student loan borrowers applying for, or switching to, the REPAYE plan.
Now FedLoan Servicing is in the news again for problems related to the Public Service Loan Forgiveness (PSLF) program. PSLF allows borrowers to get their Direct federal student loans canceled after making 120 monthly payments under an income-driven repayment plan while working full-time for a qualifying public service organization. FedLoan Servicing is the agency that the U.S. Dept. of Education has tapped to handle borrowers on track for PSLF. FedLoan Servicing allows borrowers to submit a PSLF Employment Certification Form, which it uses to make an initial determination of an employer’s PSLF eligibility and track a borrower’s qualifying payments.
As you can probably imagine, it’s not going well.Read More