Student-loan company central to lawsuit blocking debt relief gets contract renewal

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A student-loan company at the center of a lawsuit blocking Biden's debt cancellation with a 'dubious record of customer service' just got a new contract to keep servicing millions of borrowers, Cori Bush says

The liberal Supreme Court justices appeared skeptical of the states' standing to involve MOHELA in their case, and a

from left-leaning think tank Roosevelt Institute and advocacy group Debt Collective, based on Freedom of Information Act requests, said that MOHELA actually would not suffer any financial harm from debt cancellation because it would still profit from managing PSLF. the whole PSLF portfolio, which forgives student debt for government and nonprofit workers after ten years of qualifying payments. The transition of millions of public servants' accounts over to MOHELA has been far from seamless.

To be sure, ensuring accountability over servicers and improving customer service largely depends on increased funding from Congress for the Federal Student Aid office. Biden's budget — a $620 million increase over the 2023 spending level — to carry out all of the Education Department's initiatives, an increase the department said is"essential to support students and student loan borrowers.

"Students and their families deserve transparency and accountability from student loan servicers to ensure they can take advantage of the most affordable ways to repay their loans -- and it's critical that the Department of Education hold those servicers to the highest of standards," Massachusetts Sen. Elizabeth Warren told Insider.

 

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