Scott Buchanan, executive director of the Student Loan Servicing Alliance, the trade association for federal and private student loan servicers. senators recently questioned student loan experts and stakeholders about the performance of MOHELA, a student loan servicer that has been in the spotlight for allegations that it mismanaged the Public Service Loan Forgiveness (PSLF) program and provided poor customer service to student loan borrowers. In the audience, a group of borrower activists representing organizations including the Student Debt Crisis Center and the Debt Collective wore red T-shirts that read “FIRE MOHELA. Elizabeth Warren, chair of the Senate Committee on Banking, Housing and Urban Affairs Subcommittee on Economic Policy, called the hearing. ” The witnesses who testified before the subcommittee were: Persis Yu, deputy executive director and managing counsel at the Student Borrower Protection Center (SBPC), a borrower advocacy organization. MOHELA was the subject of a recent investigation by the SBPC and the American Federation of Teachers. She encouraged the senators to hold MOHELA responsible for the harm it may have caused borrowers and end the servicing contract with the company. It manages the accounts of 8. The Education Department withheld $7. Buchanan defended MOHELA throughout the hearing. That is false. You can complain to the FSA office, the Consumer Financial Protection Bureau and state ombudsman offices. “Some suggest that the servicer developed and implemented a strategy called ‘call deflection’ and suggest they did so to harm borrowers. “So if you are a MOHELA borrower, keep making your payments, make sure you stay up to date, listen to the guidance that comes out of the Department of Education, and hopefully you'll see some relief soon. ”“Recent accusations suggesting servicers are responsible for a large backlog of Public Service Loan Forgiveness applications, and that the backlog is intentional, are also false. Eliza HaverstockYou’re following Eliza HaverstockVisit your My NerdWallet Settings page to see all the writers you're following. The new IDR plan, SAVE, can cut your monthly bills in half. Eliza Haverstock is a lead writer on NerdWallet's student loan team covering loan repayment and alternatives to traditional four-year degrees. newFollow for more nerdy know-howKeep up with your favorite financial topics on NerdWallet. If you earn under $32,800 per year as an individual or $67,500 as a family of four, you could get $0 bills, while making progress toward IDR or PSLF forgiveness.
