The Loan Administrator in charge of managing a federal loan forgiveness program agreed to review and, in some cases, pay the loans of more than 200,000 Borrowers of Massachusetts to resolve a lawsuit filed against the Massachusetts Attorney General's Office .

The Pennsylvania Higher Education Assistance Agency, which operates under the Fedloan service name, exclusively manages the public service loan forgiveness program and the Dand Subsidies program at the national level.

The company had been charged by the Attorney General of Massachusetts Maura Healey in 2017, of "unjust and deceptive acts", in which the company alleged that mistakes and erroneous information prevented people from doing payments For their loans to be canceled within the framework of the National Program of Public Service Loan. Healey also accused the company of making processing errors that led people to go from a follow-up of their revenue reimbursement programs, and in some cases mistakenly convert the assistance of teachers' education for college and Higher education grants loans, which teachers had to pay.

A spokesman for the company, Keith New, stressed that the settlement, which was announced on Wednesday, "does not impose fines or civil monetary penalties in Pheaa and has no admission of crimes."

said "The settlement agreement reaffirms our commitment to all student borrowers and the high quality of customer service provided by pheaa in the management of their student loan debt. Pheaa strives to solve the problems of Service quickly and accurately for borrowers in Massachusetts and throughout the nation, in accordance with the Federal Standards of the Program, as established by the Congress and the US Department of Education. UU "

Still, the settlement could take costs for the company. Pheaa, in part, agreed to review the cases in which clients were denied the right to enroll in the loan forgiveness program.

To the extent that the company was mistaken or misrepresented eligibility requirements for the program, it agreed to accredit customers for any money they lost as a result, and in some cases, send clients A check to reimburse them. In cases where subsidies were mistakenly converted into loans, the company agreed to pay any money that was paid and paying the remaining loans.

"The public servants charged with student loan debt are entitled to alleviation that they were promised under these federal programs," Healey said when announcing the settlement agreement.

The case only affects the loans served by the company in Massachusetts, but consumer advocates said that the agreement is significant when illustrating scrutiny administrators. Understanding in the States on the Administration of the 2007 Public Service Loan Forgive Program. The program allows those who work continuously for 10 years in the non-profit public sector and make payments for the 10 years of having their Ready student loan debt forgiven.

In 2019, the Attorney General of New York, Letitia James, also demanded the Higher Education Assistance Agency of Pennsylvania, which alleges that its lack of administration of the Loan Forgive Program led many who would have It been qualified to be rejected. The California business supervisory department is also investigating whether the company incorrectly converted to teaching loans, and in April sued the company to disclose documents related to the probe.

"The truth is that loan administrators have failed to inform the borrowers of their rights, it erroneously prevented them from disqualified reimbursement programs, and ultimately prevented hundreds of thousands of teachers, workers Social, nurses, firemen and other public service workers receiving the forgiveness of the loan they obtained, "said Cody Hounanian, program director. For the Defense Group crisis of the student debt.

"This action must be an alarm clock for the Department of Education, each teacher and every public service worker throughout the country deserve to be committed as a whole after an abus of the industry

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