How are the 70 million Americans with student debt frustrating America's economic recovery? The prime time program "Now on PBS" delves into the topic of student loans tonight. In The Student Loan Sinkhole, NOW follows the story of a single mother in Baltimore trying to dig herself out of more than $70,000 student loan debt and explores issues of personal responsibility vs. policy and practices.

PBS' Nightly Business Report reported last night that the show also specifically it looks at the lending practices of Sallie Mae, the nation's largest underwriter of Federally guaranteed student loans. There are concerns Sallie Mae's debt collection agents use dubious tactics and that it tries to force students into forbearance, when loans are put on hold but interest continues to accrue and is added to the loan amount.

The program contains an interview with a former debt collector at the firm who lost his job after complaining about the practice. PBS says his allegations are supported by a lawsuit filed last year by Sallie Mae's own shareholders and in documents from a lawsuit the ex-employee once filed against the company.

PBS says it requested an interview with Sallie Mae and that the company responded with an email denying the allegations. Sallie Mae also emphasized that forbearance is used as an option of last resort and said it actually loses money on loans put into forbearance that eventually default.

Check your local listingsfor details about the show, which will also be repeated.

Posted 06/19/09 to www.NASFAA.org. Redistribution to non-NASFAA institutions is prohibited. Please submit Web site questions or comments to Web@NASFAA.org.