The Consumer Financial Protection Bureau (CFPB) may be in over its head when it comes to key constituents’ feelings regarding its Public Service Loan Forgiveness Program.
In response to a new CFPB report, people are expressing concerns over some loan servicers delaying or denying access to this loan forgiveness due to misinformation about loans, payment processing flaws and issues with job certifications. The program in question offers complete debt forgiveness after ten years of employment within specific public service positions.
Eligibility for the program requires a qualifying loan, enrollment in a qualifying repayment plan and a specified number of on-time payments as an employee of a qualified public service employer. While the first borrowers will be eligible to participate in October 2017, many have expressed fears that everything may not go as planned.
The Public Service Loan Forgiveness Program breakdown:
120 | Number of on-time payments needed to qualify for this program
500,000 | Current number of people who have expressed interest in participating in the program
25 percent | Amount of the workforce that could potentially qualify for forgiveness
Two-Thirds | Qualified people earning less than $50,000 a year
86 percent | Qualified people earning less than $75,000 a year