Student loan company accused of delaying debt forgiveness for teachers and social workers

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.

Attorney General Maura Healey sued the Pennsylvania Higher Education Assistance Agency (PHEAA) on Wednesday, 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.

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