Sen. Warren says borrowers can 'breathe a sigh of relief' after major servicer drops out of federal

[Yo_Mama_Been_Loggin]

student loan program.

The Pennsylvania Higher Education Assistance Agency (PHEAA) — a national student loan servicer that has been criticized for failing to forgive the debts of public servants — is planning to exit the federal student loan servicing business in December of this year.

PHEAA, which administers the Public Service Loan Forgiveness (PSLF) program and operates as FedLoan Servicing, has notified the Education Department (ED) that it would not seek a renewal of a 12-year federal student loan servicing contract, which expires on Dec. 14, 2021.

"Millions of loan borrowers can breathe a sigh of relief today knowing that their loans will no longer be managed by PHEAA, an organization that has robbed untold numbers of public servants of debt relief and was recently caught lying to Congress about its atrocious record of fines and penalties," Senator Elizabeth Warren (D-MA), who has called on ED previously to fire PHEAA, told Yahoo Finance, in an emailed statement.

She added: "PHEAA remains responsible for ensuring these borrowers experience a swift and orderly transition to a new servicer that won't cheat them — and we are all responsible for fixing our broken student loan system."

https://finance.yahoo.com/news/student-loan-servicer-pheaa-drops-out-of-federal-student-loan-program-172217542.html

[malthaussen]

1. PHEAA serviced all my loans.

Mind you, this was back in the 80s when they were less piratical (and tuition less of an extravagance).

-- Mal

[modrepub]

3. Mine Too

Was a grand day when I walked into the PHEAA office in Harrisburg to make my final payment.

Yea, those were the days of somewhat reasonable student loan debt. I think my total loan amount was in the $40k range. When I took my eldest to college visitation (and they split us up with the kids doing the "fun" stuff and the parents going over finances) there was an old alumni in our session who held up his original tuition bill from the 50s or 60s. It was like $700, for the whole semester. Now I talk with recent graduates whose monthly school loan payment is just south of $1,500/mo. With loan payments in that neighborhood, there's ample room for gouging and the generation of bad feelings.

[Joe Bacon]

2. They screwed me when I wound up unemployed.

1979 I was unemployed. PHEAA jacked my loan rate up from 7 to 23% and it took me until 1988 to get those parasites off my back. I have no love for those crooks.

[twodogsbarking]

4. They promised to forgive loans if you took a certain type of job.

They didn't.

[NEOBuckeye]

5. Lock the bastards up

And transfer everyone’s debt to them. See how they like that.