Currently in the United States, approximately 43 million people owe over $1.4 trillion on their federal student loans. Americans owe more in student loan debt than for auto loans, credit cards, or any other non-mortgage debt.2 Student loan servicers play a critical role in these borrowers’ financial lives, from receiving and applying payments to interacting with struggling borrowers to facilitate repayment and prevent default. A competent servicer can assist financially distressed borrowers in accessing income-driven repayment (“IDR”). Unfortunately, servicer misrepresentations can increase the cost of struggling borrowers’ loans and delay repayment. The consequences of servicers’ misconduct can be catastrophic for struggling borrowers’ financial and personal lives. Download the complete brief. (PDF)

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