New York Attorney General Sues Student-Loan Servicer for Failure to Administer Federal Loan Forgiveness Program

​On October 3, 2019, the New York Attorney General’s office (NY AG) announced that it had filed a lawsuit against a major student-loan servicer for failing to properly administer the federal Public Service Loan Forgiveness program. According to the complaint, the servicer allegedly employed deceptive, unfair, and abusive practices such as misapplying or misrecording qualifying payments, failing to provide timely explanations of its qualifying determinations to borrowers, and inconsistently providing borrowers with the tools to qualify for the forgiveness program. The NY AG alleges that this conduct violates the Consumer Financial Protection Act, 12 U.S.C. § 5531, and state consumer protection laws.

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