Moreover, Edfinancial lied to borrowers that certain jobs were not eligible for PSLF. The student loan servicer also failed to mention the PSLF when borrowers were inquiring about forgiveness options.
In a statement, CFPB Director Rohit Chopra said, “Edfinancial’s failure to tell the full truth to borrowers, so it could pad its bottom line highlights a systemic problem with loan servicing. When student loan companies lie about cancellation and repayment programs for borrowers, they are breaking the law.”
Aside from the payment of a $1 million fine, Edfinancial is required to inform all affected FFELP borrowers to take advantage of the Department of Education’s limited PSLF waiver before the deadline on October 31, 2022.
Under the waiver, any past payment on a federal student loan by a borrower working in public service can count toward PSLF, regardless of the payment plan, loan type, or whether the payment was made in full or on time. This includes payments on FFELP loans, according to the CFPB.
