The Consumer Financial Protection Bureau (CFPB) has released a bulletin detailing student loan servicers must refrain from unlawful conduct regarding borrowers’ eligibility via the Public Service Loan Forgiveness (PSLF) Waiver.
“Illegal conduct by a student loan servicer can be ruinous for borrowers who miss out on the opportunity for debt cancellation,” CFPB Director Rohit Chopra said. “We will be working closely with the U.S. Department of Education to ensure that loan cancellation promises for public service are honored.”
The bulletin recommends a series of actions servicers should consider as a means of ensuring they do not misrepresent borrower eligibility or make deceptive statements to borrowers.
The CFPB indicated the agency would be taking into consideration whether servicers of any federal loan type are providing complete and accurate information about the PSLF Waiver when discussing PSLF or loan consolidation in any communications; servicers possess adequate policies and procedures recognizing when borrowers are expressing interest in PSLF or the PSLF Waiver, where their files otherwise demonstrate their eligibility and direct borrowers to appropriate resources; servicers promote PSLF Waiver benefits to borrowers expressing interest or whose files otherwise demonstrate eligibility; and consider whether servicers are bolstering compliance management systems to develop and implement policies and procedures ensuring borrowers receive accurate and complete information about the PSLF Waiver and representatives facilitating enrollment.
“We want to make sure that every single borrower who could benefit from the PSLF Waiver has the chance to do so, and giving borrowers accurate and timely information about their eligibility is critical,” Secretary of Education Miguel Cardona said. “I appreciate the CFPB’s partnership in holding servicers accountable for their role in helping borrowers access loan forgiveness under PSLF.”