Elizabeth Warren Calls Out Student-Loan Company CEO Over Mishandling Borrowers’ Debt Cancellation

Senator Elizabeth Warren is demanding answers from the CEO of MOHELA, a major student-loan company, regarding the mishandling of borrowers' debt cancellation and monthly bills. She is urging the CEO to testify before Congress to address these issues.

Senate Hearing on MOHELA's Performance

Warren has called for the CEO of MOHELA to appear before the Senate banking committee in April to discuss the company's handling of the return to repayment and the Public Service Loan Forgiveness Program (PSLF). MOHELA was the first servicer to face penalties from the Education Department for failing to meet its obligations.

Challenges Faced by Student Loan Borrowers

In her letter to the CEO of MOHELA, Warren highlighted the company's role in impeding borrowers' access to PSLF relief and mishandling their repayment following the COVID-19 pandemic-related pause on payments. The company has faced criticism for delaying PSLF applications and forcing borrowers to make payments they did not owe.

Call for Investigation

Warren, along with other Democratic lawmakers, has called for an investigation into MOHELA's practices and urged action to be taken to protect borrowers. The Consumer Financial Protection Bureau and state attorneys general have been urged to look into the matter and ensure that borrowers receive the support they deserve.

Concerns Over Loan Forgiveness

Despite efforts by the administration to address issues with student loans, many borrowers remain confused about the status of their accounts, particularly regarding PSLF. Some borrowers who received loan forgiveness through PSLF were later informed by MOHELA that it was a mistake and that they must resume payments.

Overall, Warren's actions highlight the challenges faced by student loan borrowers and the need for greater accountability and transparency in the student loan servicing industry.

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By: asheffey@businessinsider.com (Ayelet Sheffey)
Title: Elizabeth Warren Calls Out Student-Loan Company CEO Over Mishandling Borrowers’ Debt Cancellation
Sourced From: www.businessinsider.com/elizabeth-warren-invites-mohela-ceo-testify-student-loan-forgiveness-repayment-2024-3
Published Date: Mon, 18 Mar 2024 19:32:04 +0000