Consumer Bureau: Too Few Use Loan Forgiveness
Posted at: 08/28/2013 5:17 PM
WASHINGTON (AP) - The government's consumer advocate says more than 33 million workers qualify to have their student loans forgiven because they work at schools and hospitals, in military and police uniforms. But the Consumer Financial Protection Bureau says the system is overly complicated and often confusing.
Roughly a quarter of the U.S. workforce stands to take advantage of federal rules that give favorable loan repayment options to those who work in public service fields. That's according to the report released Wednesday. But too few college graduates avail themselves of the loan forgiveness options and needlessly carry millions in debt.
The bureau did not have an exact estimate of the costs, but recommends Congress examine the loan forgiveness programs. Officials also encouraged employers to make sure their workers know what options are available.
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