Introduction
A major student-loan company, MOHELA, has been facing criticism for not paying its debt to the Lewis and Clark Discovery fund. In response, Democratic lawmaker Rep. Cori Bush has sent a letter to Missouri's attorney general, urging him to ensure that MOHELA fulfills its financial obligations. This article explores the details of the situation and the lawmaker's call for accountability.
MOHELA's Debt to the Lewis and Clark Discovery Fund
The Lewis and Clark Discovery fund was established in 2007 to support higher education projects in Missouri. MOHELA, as a student-loan company based in the state, was expected to contribute to this fund. However, due to various reasons, including the 2008 financial crisis, MOHELA has repeatedly delayed its payments. Currently, the company owes a total of $107 million to the fund.
Rep. Cori Bush's Letter to Missouri's Attorney General
Rep. Cori Bush, a Democratic lawmaker, has expressed concern over MOHELA's failure to pay its debt. In a letter to Missouri's attorney general, Andrew Bailey, she requested information on how his office plans to hold MOHELA accountable for its financial obligations. She emphasized that now that the Supreme Court has ruled against relief for student borrowers, it is crucial to ensure that MOHELA fulfills its responsibilities.
The Role of the Attorney General
Andrew Bailey, the attorney general of Missouri, played a significant role in opposing President Joe Biden's initial attempt at broad student-loan forgiveness. Although MOHELA denied direct involvement in the case, the attorneys general argued that relief measures would negatively impact the company's revenue. Rep. Cori Bush wants Bailey to clarify his stance on holding MOHELA accountable for its debts.
Experts' Perspectives on the Lawsuit
The lawsuit filed by the attorneys general, which aimed to block student-debt relief, raised questions among experts. The case argued that such relief would harm Missouri's tax revenue and MOHELA's revenue. However, some experts pointed out that the Lewis and Clark Discovery fund has been dormant for years, making the argument invalid. Justice Ketanji Brown Jackson also questioned this during oral arguments.
Request for a Response
Rep. Cori Bush has requested a response from Attorney General Andrew Bailey regarding his plans for the Lewis and Clark fund. She expects a reply by February 20. This call for accountability comes at a time when millions of borrowers have resumed paying off their federal loans after a long pause. The Education Department has identified several errors in servicing companies, including MOHELA, in their efforts to assist borrowers.
Concerns Over MOHELA's Performance
MOHELA has faced criticism for its handling of student loans. The company was penalized $7 million for failing to send on-time billing statements to borrowers. The Education Department withheld pay from other servicing companies for the same reason. While servicers have cited a lack of federal funds as an excuse for poor customer service, Rep. Cori Bush argues that MOHELA, as the sole servicer of the Public Service Loan Forgiveness program, should not face such issues.
Conclusion
Democratic lawmaker Rep. Cori Bush has called on Missouri's attorney general to ensure that student-loan company MOHELA pays its debt to the Lewis and Clark Discovery fund. With millions of borrowers resuming loan payments, it is essential to hold companies accountable for their financial obligations. The response from Attorney General Andrew Bailey will shed light on the plans to address this issue.—————————————————————————————————————————————
By: asheffey@businessinsider.com (Ayelet Sheffey)
Title: Democratic Lawmaker Calls on Student-Loan Company MOHELA to Pay Its Debt
Sourced From: www.businessinsider.com/mohela-student-loan-company-has-its-own-debt-cori-bush-2024-1
Published Date: Thu, 18 Jan 2024 19:45:49 +0000
Related posts:
Student-Loan Borrowers Could Receive Up to $20,000 in Debt Cancellation Under Biden’s Plan
Repairman with $37,000 in Student Debt Pleads to be Included in Biden’s Relief Plan
Gap said it was getting rid some managers to improve sales. One retail expert describes the company as a lazy student, unable to deliver a superior performance.
Elon Musk is tracked by a college student. The student said that he has done this for many years because he’s a big fan. Now the billionaire threatens to sue him.
Leave a Reply