student loans

Updated Friday at 11:04 a.m. ET.

Lawmakers have called for an investigation into a troubled student loan discharge program one day after an NPR report revealed that the program — meant to erase the student debts of borrowers with significant, permanent disabilities — wasn't helping the vast majority of those who are eligible.

Denise had no idea her student loans could be erased. In 2007, a truck rear-ended her car. The accident ravaged her legs and back, and the pain made it impossible for her to work.

"I have basically been in pain — chronic pain — every day," says Denise, who asked that NPR not use her full name to protect her privacy. "I live a life of going to doctors constantly."

Updated at 12:26 p.m. ET

A nonprofit student loan group is suing the nation's most powerful consumer watchdog agency. The lawsuit, first obtained by NPR, alleges that the Consumer Financial Protection Bureau has abandoned its obligation to oversee companies that manage student loans, in particular a troubled loan forgiveness program.

Presidential hopefuls Elizabeth Warren and Bernie Sanders want to tear up your student loans and set you financially free. That's popular among voters – especially those struggling to pay off this debt.

Other Democratic candidates have more modest plans. But economists say the dramatic proposals from Sanders and Warren to free millions of Americans from the burden of student debt could boost the economy in significant ways and help combat income inequality.

The U.S. Department of Education agreed to hand over department records late Thursday to Rep. Bobby Scott, D-Va., the Democratic chairman of the U.S. House education committee, just hours before Scott was set to subpoena Education Secretary Betsy DeVos for the records.

The information relates to the Education Department's unwillingness to fully forgive the federal student loans of borrowers who say they were defrauded by for-profit colleges, including the now-defunct Corinthian Colleges.

Updated at 4:20 p.m. ET

Twenty-three U.S. senators are calling on the nation's top consumer protection agency to investigate a loan servicer for its role in a troubled student loan forgiveness program. The program is designed to help public service workers like teachers and police officers.

The loan servicer, the Pennsylvania Higher Education Assistance Agency, better known as FedLoan and PHEAA, is one of the entities that handles the Public Service Loan Forgiveness Program.

A federal judge has fined U.S. Education Secretary Betsy DeVos for contempt of court for failing to stop collecting loans from former students of a now-defunct chain of for-profit colleges.

The court ruling orders the Education Department to pay a $100,000 fine. The judge said Devos had violated an order to stop collecting loans owed by students who had been defrauded by Corinthian Colleges.

Updated at 5:28 p.m. ET

Four U.S. senators told the head of the nation's top consumer protection agency Thursday that they want her to launch examinations into serious problems with a program designed to offer loan forgiveness to public service workers.

Starting early last year, the nation's most powerful consumer protection agency sent examiners into companies that run student loan call centers to try to fix a troubled loan forgiveness program. But the Department of Education blocked the bureau from getting the information it needed, NPR has learned.

The Public Service Loan Forgiveness Program is designed to help firefighters, military service members, nonprofit workers and others. But thousands of people say they were treated unfairly and rejected.

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.

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