Grabar Law Office has filed a class action against the Pennsylvania Higher Education Assistance Agency for illegally extending student loan payoff durations to generate extra servicing fees and interest payments from 2009 to the present. As alleged in the complaint, since 2009, the PHEAA, which is one of four primary servicers of federal student loan debt, delayed or failed to process applications under the Public Service Loan Forgiveness program and the Teacher Education Assistance for College and Higher Education grant program. These programs are designed to make higher education more affordable for public servants by providing financial assistance to reduce the burden of their student loans, and they include complete forgiveness of federal student debt for borrowers who commit to 10 years of qualifying public service employment.
The case is brought on behalf of all persons whose student loans were serviced by FedLoan and who enrolled in an Alternative Loan Repayment Programs during the period of at least January 1, 2009 through the present (“the Class Period”).
The case is Carol Clancy v. Pennsylvania Higher Education Assistance Agency, 2:18-cv-00753-CDJ (E.D.Pa.).
If you have a FedLoan serviced through PHEAA and are having issues with respect to student loan payments or forgiveness, contact us today
