In the deluge of complaints about a troubled program that pays off student loans for people who work in public service, one stands out for its frequency: Thousands of people say they were misled by loan servicers working on the U.S. government’s behalf.
It is among the most vexing problems with a program that has become a notorious quagmire, with a rejection rate of nearly 99 percent. Lawmakers, consumer advocates and desperate public servants say the Education Department should create a formal process to appeal denials, especially rejections that borrowers say were affected by mistakes made by servicers.