How Student Loan Servicing Errors Widen the Wealth Gap

Episode 47 of Inequality Conversations digs into a hidden driver of wealth inequality: student loan servicing errors. Lucas and Luna explore how widespread mistakes in payment processing, forbearance steering, and income-driven repayment recertification disproportionately harm low-income borrowers and borrowers of color. Drawing on a 2023 Consumer Financial Protection Bureau report showing that servicers have cost borrowers over $2.5 billion in improper fees and interest, they explain the mechanics of the 'student loan wealth drain' — and why federal oversight has failed to fix it. The episode also examines a new California law requiring servicers to audit their own error rates, and asks what real borrower protections could look like. A focused, data-driven look at a policy gap that keeps millions trapped in debt. #StudentLoanServicing #WealthGap #IncomeDistribution #EconomicJustice #CFPB #EducationDebt #BorrowerProtection #ForbearanceSteering #IDRRecertification #FinancialRegulation #WealthInequality #ConsumerFinance #PolicyFailure #RacialWealthGap #LoanServicingErrors #Economics #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo