Agency Blasts Contractor on Loan Forgiveness

Flawed payment processing, botched paperwork and inaccurate information from FedLoan Servicing is derailing hundreds of public-sector workers from receiving student loan forgiveness, the Consumer Financial Protection Bureau said in a report Thursday.

“Borrowers working in public service should not miss out on key consumer benefits because their student loan servicer failed to comply with the law,” CFPB Director Richard Cordray said in prepared remarks for a bureau event in Raleigh on Thursday.

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