New York Attorney General Letitia James (D), announced an Agreement on Wednesday, was made with the Pennsylvania Higher Education Assistance Agency (PHEAA), which will help Thousands of New York Loan Borrowers.
The PHEAA has been required to Audit nearly 10,000 New York Borrowers' Accounts to identify Errors that may have caused Borrowers to Miss out on Benefits, such as:
- Income-driven Repayment Plans.
- Debt Forgiveness for eligible Borrowers under the Public Service Loan Forgiveness (PSLF) program.
The Agreement followed a Lawsuit that was brought against PHEAA, over Allegations of:
- Inaccurately counting Loan Payments.
- Improperly Denying Applications.
- Failing to Process Applications in a Timely manner.
- Incorrect Information provided about PSLF.
- Inaccurate monthly Payments that Borrowers were Charged.
among others.
"Negligent student loan servicers like PHEAA left countless students buried in debt and contributed to the national student debt crisis," James said in a statement. "Today's agreement will correct years of mismanagement by PHEAA and put borrowers on a path to finally being debt-free."
While PHEAA has announced that it will Stop serving Federal Student Loans when its current Contract with the U.S. Department of Education ends in December 2022, it has Committed to taking the necessary Actions demanded by the Agreement with the Attorney General's Office.
NYC Wins When Everyone Can Vote! Michael H. Drucker
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