According to the report:As of 2021, only 32 people have received student loan forgiveness through income-driven repayment plans, even though 4.4 million student loan borrowers are enrolled;Some student loan servicers weren’t tracking student loan payments properly and didn’t know when student loan borrowers qualified for student loan cancellation;The mismanagement of student loans particularly hurt financially vulnerable, low income student loan borrowers;Student loan payment history was lost when student loans were transferred to different student loan servicers; andSome student loan servicers took months or years to correct mistakes on student loan borrowers’ student loan accounts. For example, student loan borrowers can qualify for student loan cancellation after 120 student loan payments for public service loan forgiveness. However, the investigation uncovered that these student loan servicers weren’t counting how many student loan payments each student loan borrower made. Also, this mean student loan borrowers — not student loan servicers — had the burden of tracking their student loan payments to get student loan cancellation. Even worse, when student loan borrowers who were in student loan default ultimately rehabilitated their student loans, some student loan servicers lost their student loan payment history.

Source: Forbes April 02, 2022 15:15 UTC