Yesterday, Massachusetts Attorney General Maura Healey filed a lawsuit against loan student servicing giant FedLoan Servicing (formally known as the Pennsylvania Higher Education Assistance Authority, or “PHEAA” for short). The lawsuit alleges widespread loan servicing problems that have harmed thousands of borrowers. The allegations against FedLoan Servicing are entirely unsurprising to me, as I’ve written extensively about ongoing problems with this student loan servicing company. But this is a major development and represents an important step in holding student loan servicers accountable for their actions.
Here are some common questions I’m getting about the lawsuit – and my answers.Read More