Company managing public service loan forgiveness refuses to testify before House panel

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The company has drawn the ire of government watchdogs, state attorneys general and congressional Democrats.

The committee will have an empty chair for Steeley if he does not show up on Thursday, according to a committee aide. A spokesperson for the panel declined to comment on whether the committee would issue a subpoena to compel his testimony.

The Education Department’s contract with PHEAA — which has totaled $1.3 billion over the last decade — and that of other major loan servicers is expiring in December, though they could be extended. PHEAA has bid on aspects of a new loan servicing platform, called NextGen, that the Trump administration is in the process of developing.

A career Education Department official, Jeff Appel, is scheduled to testify at Thursday’s hearing as is Melissa Emrey-Arras, who directs education issues at the Government Accountability Office. The GAO has issued several reports that are critical of the Education Department’s management of the public service loan forgiveness program.

Other witnesses include Yael Shavit, an assistant attorney general of Massachusetts, whose office is suing PHEAA over its alleged failures in managing the public service loan forgiveness program, and Kelly Finlaw, a New York City teacher, who is one of the named plaintiffs in the American Federation of Teachers’ lawsuit against the Education Secretary Betsy DeVos over the program.

Matthew M. Chingos, vice president for education data and policy at the Urban Institute, will also testify.

 

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morgfair This guy isn’t even in government or congress!!! Wait till I try this here in my local court!!!

Mr. Steeley probably cannot speak freely about PHEEA’s process due to provisions in the servicing contract. Has anyone done a FOIA to the Education Department? The Contractual SOW will clarify how PSLF is to be handled by PHEEA.

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