Colorado Seeks Records From Student Loan Servicer Accused Of Incompetently Administering Federal Loan Forgiveness Program

Lori Kalani, Bernard Nash
Cozen O'Connor
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Cozen O'Connor

  • Colorado AG Phil Weiser sued federal student loan servicer Pennsylvania Higher Education Assistance Agency d/b/a FedLoan Servicing (“PHEAA”) over allegations that it failed to provide information to student borrowers about their payment options and failed to maintain required records in violation of the Colorado Student Loan Servicers Act (“SLSA”).
  • The complaint alleges, among other things, that PHEAA, which has an exclusive contract to service the federal Public Service Loan Forgiveness (“PSLF”) program, failed to provide sufficient information to student borrowers about their repayment options, potentially preventing them from qualifying for loan forgiveness under the PSLF program, and also failed to maintain and make available adequate records.
  • The complaint seeks injunctive relief to compel PHEAA to produce the records it is required to keep and make available under the SLSA.
  • As previously reported, in February 2021, Massachusetts AG Maura Healey reached a settlement with PHEAA to resolve allegations that it deprived student borrowers of relief they were entitled to under federal programs offering loan forgiveness and grants for public-service jobholders.

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