Sarbanes Commends Release of Comprehensive Report on Challenges Facing Servicemembers with Education Loans

FOR IMMEDIATE RELEASE
October 19, 2012
CONTACT: Daniel Jacobs
(202) 225-4016
said Congressman Sarbanes. “The federal government and the student loan servicing industry both have a responsibility to provide them with accurate, thorough and timely information about the benefits they have earned, particularly when it comes to benefits that will help them pursue higher education and reward them for their service.”

Congressman Sarbanes is dedicated to assisting graduates who pursue careers in public service. In 2007, he authored the legislation that created the Public Service Loan Forgiveness (PSLF) program, which provides loan repayment assistance and debt forgiveness to public servants and service members. The new CFPB report points out that service members may not know this option is available to them and that federal student loan servicers may not inform them about this benefit. As a result, these men and women may not be receiving important benefits for which they are eligible, or worse, may choose not to pursue higher education because of the cost.

“We’ve worked hard to give servicemembers well-deserved help as they struggle to manage their education loans, but if they don’t know what options are available, our work has fallen short,” said Congressman Sarbanes.

The CFPB report is an important step forward in identifying shortfalls in student loan servicing and will be critical in taking steps to ensure that the needs of our service members are met in the future. For more information, read the full report here: http://files.consumerfinance.gov/f/201210_cfpb_servicemember-student-loan-servicing.pdf 

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