A student loan company is creating barriers for teachers, social workers and others to get the loan forgiveness they’re entitled to, according to the Attorney General of Massachusetts, MarketWatch.com reported yesterday. Attorney General Maura Healey yesterday sued the Pennsylvania Higher Education Assistance Agency (PHEAA), accusing the company of mishandling borrowers’ accounts and prolonging the amount of time they’d have to wait to have their debt wiped away under the Public Service Loan Forgiveness program (PSLF). The initiative allows borrowers who work for the government and certain types of nonprofits to have their federal student loans forgiven after 120 months or 10 years of payments. But according to Healey’s suit, PHEAA, which has the exclusive government contract to work with borrowers in the forgiveness program, delayed processing borrowers’ paperwork, which will ultimately force them to pay their debts for longer than necessary before receiving forgiveness.
