"Errors by Student Loan Firms May Threaten Borrowers and Economic Stability, Federal Agency Warns"
The Consumer Financial Protection Bureau (CFPB) has highlighted serious risks to borrowers and the economy due to errors made by student loan servicers. These errors include long wait times, processing delays, and inaccurate billing, which have led to the withholding of payments to three servicers by the U.S. Department of Education. The Department is also placing affected borrowers in administrative forbearance, ensuring they owe no payments and face no interest charges until the issues are resolved. The CFPB's findings underscore the challenges faced by borrowers as they navigate the complexities of student loan repayment, which is particularly concerning given the $1.7 trillion outstanding education debt in the U.S.