Borrowers 'Chilled to the Bone' as DOE Reneges on Student Loan Forgiveness

[yurbud]

What if you took a low paying public sector job and arranged for lower payments on your student loans based on the promise of public service loan forgiveness, and a new administration breaks that promise?

This is an opportunity for Democrats to remind voters what they do better, and once back in power, we need to devote at least as much the time, money, and effort to bail out student loan borrowers and others crapped on by the financial sector as we do to bailing those who did the crapping.

In a troubling development for the countless people saddled with student debt, the U.S. Department of Education (DOE) may be reneging on a promise made to over 550,000 such borrowers who were led to believe that their loans would be forgiven after ten years of work in the public service.

Responding to an ongoing lawsuit from four borrowers, the DOE has given no explanation but says that approval letters sent to individuals who signed up for the Public Service Loan Forgiveness Program are not in fact "binding," the New York Times reported Thursday.

Times reporter Stacy Cowley wrote:

In a legal filing submitted last week, the Education Department suggested that borrowers could not rely on the program's administrator to say accurately whether they qualify for debt forgiveness. The thousands of approval letters that have been sent by the administrator, FedLoan Servicing, are not binding and can be rescinded at any time, the agency said.

The filing adds to questions and concerns about the program just as the first potential beneficiaries reach the end of their 10-year commitment—and the clocks start ticking on the remainder of their debts

http://www.commondreams.org/news/2017/03/31/borrowers-chilled-bone-doe-reneges-student-loan-forgiveness

[underpants]

1. Oh God.

I know several people who took advantage of that.

[yurbud]

3. I'm one.

[dixiegrrrrl]

7. start looking for the class action lawsuits.

in fact, start looking for the class action attorneys....I know there is a web site of class action suits, google may be helpful.

We really cannot have yoyo administrations which can over turn the previous admins. rules.

[eppur_se_muova]

2. Sorry. Only so-called billionaires get away with not paying back their loans. nt

[yurbud]

5. We'll have to start a hedge fund to get a bailout

[bullimiami]

4. Outrageous. Seriously.

[raging moderate]

6. No contracts will be truly binding anymore.

Unless it benefits some person who is already magnificently wealthy, it is increasingly true that no contract is legally binding. Workers' contractually agreed pensions can be arbitrarily denied, but the benefits promised to a corporation CEO remain a sacred contract obligation no matter what he does. Promises made to student loan recipients who have faithfully fulfilled 10-year work obligations can be tossed aside on the whim of a superannuated cellophane-wrapped debutante. Anybody who trusts any promise made by any employer is now a fool. You HAVE to do what you promised or be punished; they only have to do what they promised if they feel like it. Because they are your "Betters" in the rigid hierarchy. And it never occurs to these people that the fish truly does rot from the head. And that is how a new dark age can begin.

[yurbud]

8. totally agrer. we have to create structures that counter that power

[Beartracks]

9. Govt tone is set by its leadership. Hey, if Trump doesn't honor obligations...

... why should ANYone?

====================

[yurbud]

10. yep. though I think any righty would do the same

Just without the foreshadowing in his personal life.

[Vinca]

11. Sounds like bait and switch. Find a good lawyer.

[Hekate]

12. oh. my. gods.