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student loans

A new report from a government watchdog, first obtained by NPR, says an expanded effort by Congress to forgive the student loans of public servants is remarkably unforgiving.

Congress created the expansion program last year in response to a growing outcry. Thousands of borrowers — nurses, teachers and other public servants — complained that the requirements for the original program were so rigid and poorly communicated that lawmakers needed to step in. But, documents show, even this expansion of the Public Service Loan Forgiveness (PSLF) program isn't working.

The federal Consumer Financial Protection Bureau has a new student loan watchdog, and his appointment is raising questions about who is safeguarding the interests of student borrowers.

Updated at 1:09 p.m. ET

Debbie Baker thought she qualified for a federal program that helps teachers such as her, as well as nurses, police officers, librarians and others. The Department of Education program forgives their federal student loans if they make their payments for 10 years and work in public service.

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.

The Ohio State University

The Ohio State University plans to increase tuition for incoming freshmen students, according to a plan going before university trustees on Wednesday.

Americans owe about $1.6 trillion in student loan debt. That's about twice the current budget for the Defense Department and around 22 times the budget for the Education Department.

Lots of people have student loans: more than 45 million people. They collectively owe about $1.6 trillion.

That is, of course, a lot of debt — but amid all the national debate right now about what to do about it, it's important to remember that not all debt is created equal, and some borrowers are struggling more than others.

Updated Sunday at 2:14 p.m. ET

On Friday, three days before Memorial Day, attorneys general for 47 states wrote to Education Secretary Betsy DeVos asking her to automatically forgive student loans for eligible disabled veterans.

The director of the Consumer Financial Protection Bureau says the Trump administration's Education Department is getting in the way of efforts to police the student loan industry. The revelation, in a letter obtained by NPR, comes at the same time that lawsuits allege that widespread wrongdoing by student loan companies is costing some borrowers thousands of dollars.

Nearly 2,300 teachers have just had a mountain of student loan debt lifted off their backs, according to previously unreleased figures from the U.S. Department of Education. The move follows reporting by NPR that exposed a nightmare for public school teachers across the country.

Massachusetts Sen. Elizabeth Warren has issued another big policy proposal as part of her campaign for the Democratic presidential nomination in 2020. This one concerns higher education.

Warren proposes that the federal government write off hundreds of billions of dollars in existing student loan debt.

Six Democratic senators, including two presidential candidates, sent a letter to the head of the Consumer Financial Protection Bureau on Wednesday demanding that the agency prove it is policing the companies, known as servicers, that the government pays to manage its trillion-dollar, federal student loan portfolio.

J. Scott Applewhite / Associated Press

Sen. Sherrod Brown (D-Ohio) is pushing for a bill that would give states incentives to help students graduate from college debt-free.

Updated at 3:13 p.m. ET

A critical new report from the U.S. Department of Education's Office of Inspector General finds the department's student loan unit failed to adequately supervise the companies it pays to manage the nation's trillion-dollar portfolio of federal student loans. The report also rebukes the department's office of Federal Student Aid for rarely penalizing companies that failed to follow the rules.

Updated at 1:12 p.m. ET

The federal official in charge of protecting student borrowers from predatory lending practices has stepped down.

In a scathing resignation letter, Seth Frotman, who until now was the student loan ombudsman at the Consumer Financial Protection Bureau, says current leadership "has turned its back on young people and their financial futures." The letter was addressed to Mick Mulvaney, the bureau's acting director.

Updated at 1:05 p.m. ET

It's a financial nightmare for public school teachers across the country: Federal grants they received to work in low-income schools were converted to thousands of dollars in loans that they now must pay back.

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