Servicer Lawsuit Supports Federal Overreach and Seeks to Avoid Accountability
PHEAA Should Drop the Lawsuit; DOE Should Respect State’s Rights to Address Historically Problematic Practices WASHINGTON, D.C. – The Pennsylvania Higher Education Assistance Agency (PHEAA), one of the nation's largest student loan servicers, is suing the state of Connecticut in order to circumvent a 2015 law to protect student loan borrowers in the state from negligent and predatory servicing practices. Last year, PHEAA was sued by the state of Massachusetts for allegedly overcharging student borrowers and failing to put them into the income-based repayment plans, mismanaging the