In a development that surprises absolutely no one who is a follower of the scamblogs:
For 10 years, Baker, who was a public school teacher in Tulsa, Okla., checked in with loan servicing companies and was told she was on track...[b]ut it turns out that her $76,000 in student loans didn't get forgiven. Baker was finally told she was in the wrong type of loan. If she'd known that at the beginning, she could have switched loans and ended up qualifying. But she says nobody ever told her.
Whelp, it looks like a lot of people don't get told a lot of things, be they teachers, police offices, or even lawyers, for that matter (unfortunately, the plight of attorneys involved in public service jobs did not seem to figure into the story, probably due to the fact that teachers, fire-fighters, and police officers probably garner more sympathy). And $76,000 is no small sum of money, let alone the six-figures many law graduates carry. I wonder if the courts will consider public school teachers "sophisticated consumers" as well in the ongoing litigation.
The teachers union lawsuit alleges that the Department of Education "knows of — but completely disregards — repeated misrepresentations made by [student loan] servicers to borrowers who are attempting to qualify ... resulting in unwarranted denials of loan forgiveness." In other words, people like Baker aren't given the right information or advice, and many end up in the wrong types of loans or repayment plans and get unfairly disqualified...Navient, one of the nation's largest loan servicer companies, is not commenting on the lawsuit. But the company said in a statement to NPR, "We understand the frustration borrowers face in navigating a complex federal loan program, which is why we consistently advocate for policy reforms to simplify the system."
And so the finger-pointing begins in earnest between bureaucratic government agencies and their quasi-governmental-sub-contractors. If only people had known that PSLF was not a "done deal" at the time it was instituted, perhaps warned others to not bank on this in making their decisions to attend higher education...
Oh, wait. Our own Antiro at the time was bringing up this issue and the other sources that were commenting on it, back in 2014, a good five years before PSLF was to "come due":
Hilariously, the WSJ reports that the Dean of Georgetown Law, Bill Traenor, says that the government's forgiveness programs are not influencing G-town's tuition, which is approximately $50,000 (don't forget the high CoL that comes along with living in Washington D.C.). Georgetown once proclaimed that "public interest borrowers might not pay a single penny on their loans—ever!", on their website. According to the WSJ, G-Town has been "steering" its graduates into public-service jobs "as part of its Jesuit mission." We have data on how many people are in G-Town's public-interest program: 432, up 60% from 2 years ago.
Yep. This was just one of many examples of the Law School Cartel handing out PSLF pipe-dreams like candy. Don't worry about the debt, kids, Uncle Sam will take care of all that for you (somehow, someway...), especially when there is liberty and justice that needs doing! Now, sign here.
Here's hoping that this suit will finally bring attention to these programs, and, as Navient so graciously stated, help "simplify the system." Because nothing says loan forgiveness is here for you like having to sue to properly administer and enforce the program.
Snake oil that the Cartel was more than happy to advertise at the time, so long as it brought people in. Odd that the Cartel does not appear to be falling all over itself to help fix this issue. As teachers and others are now learning what law grads learned the hard way, the attitude is "Let the graduates make their claims and chase a broken system, we got ours."