The student loan forgiveness program designed to help indebted college graduates working inpublic service jobs has problems with loan servicers that theConsumer Financial Protection Bureau is trying to correct.

According to a new CFPB report, “Staying on Track While GivingBack,” borrowers complain that servicers fail to inform them abouteligibility for the Public Service Loan Forgiveness program, denytheir eligibility after they've started working in public serviceand erroneously process payments during annual recertifications sothose payments don't qualify for loan forgiveness.

Under the program, borrowers with federal student loans who work as policeofficers, teachers, public defenders or in other public servicejobs can have their loans forgiven, provided they are enrolled in aqualifying repayment plan such as an income-driven plan and make120 loan payments. But problems with loan servicers oftenderail those plans.

“Borrowers have told us about student loan industry practicesthat delay or deny access to expected help such as the PublicService Loan Forgiveness program,” said CFPB Director RichardCordray. “We want those in public service jobs who give back to ourcommunities to be able to stay on track, and not worry aboutunnecessary debt due to servicer errors.”

To that end, the CFPB has updated procedures for its examinersof student loan servicers to make sure they inform borrowers aboutwhat they need to qualify for the program and accurately calculateborrowers' qualifying payments.

In addition, the CFPB has started a campaign called “CertifyYour Service” to help eligible borrowers gain access to the programand stay on track for loan forgiveness, and it has updated toolsfor employers to help their employees enroll in such plans. It hasalso published new guides about the program for first respondersand teachers, which complement guides already published for membersof the military, Peace Corps, AmeriCorps and other publicservices.

“Borrowers working in public service should not miss out on keyconsumer benefits because their student loan servicer failed tocomply with the law,” Cordray said at an event Thursday in NorthCarolina.

The CFPB reports that more than 500,000 people have signaledtheir intention to pursue debt relief through the Public ServiceLoan Forgiveness program. Eighty-six percent of them earn less than$75,000 a year and two-thirds earn less than $50,000 a year.

Starting this October, the first eligible borrowers could havetheir federal student loans forgiven under the plan, which began in2007.