Senators call for probe into student loan program after NPR unearthed major problems
Lawmakers have called for an investigation into a troubled student loan cancellation program two weeks after revealed the program — designed to help low-income borrowers, and eventually offer them debt cancellation — wasn't living up to its promise.
More than 9 million borrowers are currently enrolled in income-driven repayment (IDR) plans, which are designed to help people who cannot afford to make large monthly payments. The plans promise loan cancellation after 20-25 years. But documents obtained by NPR offer striking evidence that these plans have been badly mismanaged by loan servicers and the U.S. Department of Education.
The documents shed new light on that, at the time, 4.4 million borrowers had been repaying for at least 20 years but only 32 had had loans canceled under IDR.
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