QUORUMCALL//GPT:
WARREN LAYS INTO STUDENT LOAN SERVICER
Senator Elizabeth Warren has slammed student loan servicer MOHELA for their handling of federal student loans. In a Senate hearing, Warren took aim at the company’s CEO, James Steeley, for alleged mismanagement.
ALLEGATIONS OF MISMANAGEMENT
– Warren cited a 2020 report from the Student Borrower Protection Center that found MOHELA had mishandled the Public Service Loan Forgiveness program.
– The report alleges that the company sent out erroneous letters, leading to thousands of teachers and service workers having their loan forgiveness applications denied.
THE BORROWER’S PLIGHT
– Steeley argued that MOHELA was only following the Department of Education’s instructions.
– Warren countered that the company should have done more to help borrowers navigate the complex system and ensure they received the forgiveness they were entitled to.
TOPICS COVERED
#StudentLoans #LoanForgiveness #Education
NOTE
This report comes from Business Insider, a publication known for its in-depth reporting on economic and financial matters.
