The 3 prominent Democrats want state and federal investigators to look into a significant student loan provider.
Sens. Elizabeth Warren, Bernie Sanders, and Senate Majority Leader Chuck Schumer released a statement on Wednesday urging the Consumer Financial Protection Bureau and state attorneys general to look into “student loan forgiveness oversight” by MOHELA, the federal servicer dependent in Missouri that oversees the Public Service Loan Forgiveness portfolio.
The announcement came after a study released on Wednesday by the American Federation of Teachers and advocacy group Student Borrower Protection Center. The report included internal papers that were accessed through Missouri’s Sunshine Law. The records included internal correspondence between MOHELA and its customer service personnel about the strategy for repayment and how to interact with debtors.
The strategy contained “call deflection” techniques that complicated the process of contacting an agent for borrowers with inquiries. The senators claimed in their statement that they are “speaking for anger at MOHELA’s mismanagement regarding its student loan portfolio which ended up in refused services to a billion hardworking borrowers,” supporting the advocacy groups in their outrage.
“Examine MOHELA and take actions to the maximum extent possible within the law,” they demanded of the CFPB and attorneys general. Emergency responders, active-duty personnel, and public servants across our country deserve much, much better.”
We’re protesting MOHELA’s mishandling of student loans alongside @theSBPC and @AFTunion.
The Biden administration made significant efforts to improve PSLF, so it is shameful that MOHELA’s actions prevented hard-working borrowers from receiving services.
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