Today, the U.S. Department of Education is, essentially, a trillion-dollar bank, serving more than 40 million student borrowers. While the government writes these student loans, it simply cannot run the call centers or handle the paperwork for so many borrowers. It needs help. So it pays companies — the department has contracts with nine of them — to handle customer service. These servicers, as they're known, are glorified record-keepers and debt collectors. But they're also powerful gatekeepers.

    And these servicers, Frotman found, with a big assist from the Education Department, were wreaking havoc with the Public Service Loan Forgiveness program.



Cumol:

Every time I read an article like that, I think one thing "the US is a fucked up country".

I studied for 6.5 years, got a federal loan called Bafög in which I get paid between 400-700 euros per month, an amount that is dependent on the income of my parents and the price of living in the city I am studying at. When my studies are over, I am give 5 years of time where I do not have to pay anything back, yet. Then I am given options to pay back a maximum of 10k euros. No matter how much I got, 10k is the maximum. In my case I got 15k euros in that time and had to pay back 10k. I opted to back it back all at once (savings and some help from my parents). And now I am debt free.

In parallel, students in the US are fucked. Is there even a way to come out of uni debt free? Or finish paying this back before you die? I read somewhere that if I have 10 dollars in my pocked and am debt free, I am better off than 15% of americans (link).

That is somehow fucked up. It feels like your economy, government and everything in that country is playing against the people instead of helping them out.

What I always wonder is. Why do people think that this is fine the way it is? Who wakes up in the morning and thinks "wow, I love how this country is treating me".


posted 394 days ago