• FSA ID Protection: If you have provided the company with your FSA ID, change your password immediately by contacting the Student Loan Support Center at 1-800-557-7394. • Report the company to a regulatory agency: Federal Trade Commission (FTC), Consumer Finance Protection Bureau (CFPB), State Office of Attorney General. “I was recently involved in a scam from SL Account Management, which is a company that said they were with the Department of Education,” Grier said. While the CFPB has identified Grier as a victim of the scam it is not clear if she will get her money back. I realized these people had my social security, they had my bank account, they had everything,” she said. Spouses and Parents of 9/11/01 Victims Eligibility. ©2020 Verizon Media. Now the Massachusetts Attorney General is saying the FedLoan Servicing mess is even larger. We made it easy for you to exercise your right to vote! In addition, in August 2017 they were sued by the Massachusetts State Attorney General. The agency reported in 2014 that it serviced a total of $287 billion worth of loans. Some people have waited six months or more for decisions on these programs. Suit Against FedLoan Servicing Alleges They Screwed Over Public Service Loan Forgiveness and TEACH Grant Debtors, Sign up for membership to become a founding member and help shape HuffPost's next chapter. Who Is Suing Them: FedLoan Servicing is being sued by the Massachusetts State Attorney General as of August 2017. Add your voice. “We previously identified this group and referred them numerous times for enforcement action to the FTC and California AG’s office going back to at least 2016,” said Keith New, Director, Public & Media Relations, PHEAA, Fedloan Servicing & American Education Services. According to the complaint, “PHEAA has failed to process borrowers’ IDR applications timely and properly, thereby depriving borrowers of the opportunity to make qualifying monthly payments that count towards loan forgiveness. Is FedLoan Servicing Legit? Report possible fraud and put a freeze on your credit. Grier also contacted PHEAA about her experience and was interviewed by investigators. There have been many complaints directed towards FedLoan Servicing. SL Account Management used Grier’s personal information to apply at FedLoan, which is actually affiliated with the U.S. Department of Education. This is the type of case the Consumer Financial Protection Bureau (CFPB) is perfect for but right now conservative voices are shouting for the CFPB to be shuttered. There was a lawsuit filed against FedLoan Servicing by Massachusetts Attorney General Maura Healey in August 2017. Massachusetts’ Attorney General Maura Healey has filed an enforcement action against FedLoan Servicing, alleging that the company has mismanaged the … She tried to contact SL Account Management but the number was disconnected and no one returned her emails. The Attorney General of Massachusetts has had enough of the complaints of incompetence about FedLoan Servicing (AKA Pennsylvania Higher Education Assistance Agency, PHEAA). 08/25/2017 11:51 am ET. “So FedLoan thought I was to be paying zero dollars after my first 6 months and SL Account Management was still requesting $40 a month for the next 10 years.”. Court denies student loan servicer’s bid to dismiss Massachusetts lawsuit. FedLoan Servicing has been involved in some scandals and controversy. The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against the company for deceptive and unlawful practices. I sure hate to be cynical but it always seems like the individual is the least powerful and most taken advantage of by government and private creditors alike. Copyright 2020 Nexstar Inc. All rights reserved. In 2017, the attorney general of Massachusetts filed a lawsuit against FedLoan Servicing’s parent company, PHEAA. They found that Fedloan Servicing (along with the other top companies) have a history of complaints when it comes to giving consumers inaccurate information. This post was published on the now-closed HuffPost Contributor platform. The Department of Education is pointing the finger back at FedLoan Servicing and saying the Government isn’t responsible either. The lawsuit, submitted April 1 to the San Francisco Superior Court, requests an order requiring student loan servicer Pennsylvania Higher Education Assistance Agency (PHEAA), better known as FedLoan Servicing, to produce documents that detail the company’s administration of a mismanaged grant program for teachers. If involved with a Third-Party Debt Relief company, consumers should: • Contact your loan servicer if you were a victim of a Third-Party Debt Relief company. Box 69184 Harrisburg, PA 17106-9184; Spouses and Parents of 9/11/01 Victims. They have accused Fedloan to not properly handling their Federal student loan servicing responsibility. “Our Office of Consumer Advocacy (OCA) is also working with the affected customer to ensure that they are in the appropriate repayment plan,” said New. “They asked for normal information. HARRISBURG, Pa. (WHTM) -- The Steelton Borough Police Department is searching for Shnasia Peterson, of Steelton, for his alleged involvement in the homicide of Ismail Lewis on September 2nd, 2020. NEW YORK, March 1, 2019 /PRNewswire/ -- Pierce Bainbridge Beck Price & Hecht LLP has filed a class action complaint alleging that student … Many student loan borrowers have been waiting for months to have their request for income-driven repayment processed and approved. There was even a FedLoan Servicing lawsuit case in which Massachusetts Attorney General Maura Healey filed a lawsuit against FedLoan Servicing. They said that so I could qualify for the zero dollar repayment,” said Grier. “They had changed everything: my user name, my password, my email. Fedloan Servicing, the often embattled federal student loan servicing agency has been sued again in Pennsylvania State Court.According to documents we managed to dig up the case involves someone who attempted to lawfully apply for Public Service Student Loan Forgiveness and met roadblock after roadblock by Fedloan Servicing.. Related: How To Qualify For Student Loan Forgiveness Essentially because they have been … I’ve seen “FedLoan Servicing is literally the worst,” “FedLoan Servicing hates you,” and “rage-inducing” to describe what it feels like to deal with them. The Attorney General initiated the lawsuit citing that the financial futures of public servants across the country have been jeopardized. FedLoan Servicing is a student loan servicing company contracted by the Department of Education to handle their student loans. • Contact your financial institution: If you have provided your banking information (credit card/debit card, bank account), contact your bank to prevent fraudulent charges. Borrowers therefore bear the brunt of PHEAA’s servicing failures.”. FedLoan has been accused of mismanaging their responsibilities for servicing the debt of everyone enrolled in the … Includes information on what FedLoan does, how to apply for PSLF, lawsuits against FedLoan, an instance of the damage caused, how to protect yourself against loss, alternatives to PSLF and customer reviews for FedLoan Servicing. “These types of scams involving third-party debt relief companies are aggressively targeting student loan borrowers through social media, text messages, and phone calls. Why Are They Being Sued: They are being sued for very similar reasons as the Navient lawsuit. The top student loan official from the Consumer Financial Protection Bureau cited “ detours and dead-ends ” when it came to keeping payments affordable. Which is really unfortunate,” she said. The Attorney General of Massachusetts has had enough of the complaints of incompetence about FedLoan Servicing (AKA Pennsylvania Higher Education Assistance Agency, PHEAA). HARRISBURG, Pa. (WHTM) -- Harrisburg Police responded to a report of a wounded male lying in the street in the area of South 13th and Chestnut Streets Wednesday morning. To accommodate its processing delays, PHEAA has put borrowers’ accounts into forbearance status, which is not a qualifying repayment plan for loan forgiveness under PSLF or IDR plans.” – Source, FedLoan Servicing manages “more than a quarter of the nation’s $1.4 trillion student loan debt on behalf of various lenders for millions of borrowers across the United States.”. It was established in 2009 by PHEAA specifically to service student loans owned by the federal government. And guess who is left holding the bag here, the individual consumer since the Department of Education says FedLoan Servicing is making mistakes they don’t have to stand behind. A student loan servicing lawsuit has been filed against Fedloan by Massachusetts State Attorney General. PHEAA sends out news releases warning consumers of scams twice a year, also offering tips to identify possible scams. While they wait, borrowers are faced with a choice to either make impossible payments under a balance-based plan, or use up their forbearance while interest accrues. Attorney General Maura Healey says, “This company’s actions have jeopardized the financial futures of teachers and public servants across the country,” said AG Healey. FedLoan Servicing isn’t a lender nor does it service private loans. They had my address as an abandoned warehouse in Tustin, California. The Government goes on to assert even if FedLoan Servicing gives credit towards forgiveness it doesn’t matter as only the Department of Education can make that determination. FedLoan Backlog Lawsuit Investigation Our attorneys are investigating whether FedLoan Servicing failed to process student loan borrowers’ requests for income-driven repayment plans in a timely manner. She got an email saying her consolidation was complete and started making monthly payments to SL Account Management. Updated by B Harshitha on 1st February 2020 • Contact the Credit Bureaus: Call to the three major credit reporting bureaus- Equifax, Experian, and TransUnion. Because on August 23rd, 2017, the Massachusetts State Attorney General initiated a student loan servicing lawsuit against FedLoan, one of the nation’s largest federal student loan servicers, accusing them of neglecting to properly handle their Federal student loan servicing responsibilities. Mail: FedLoan Servicing P.O. For assistance, complainants can contact the company's Office of … FedLoan Servicing and PHEAA have been the subject of widespread criticism and multiple lawsuits due to allegedly poor student loan servicing … FedLoan Servicing Complaints. The CFPB has set up a notice for consumers who may have been affected by the scam. The lawsuit, filed in U.S. District Court for the Southern District of New York, seeks restitution for state residents it says were harmed by the loan servicer … Upon arrival, officers located the unresponsive male that had suffered from a gunshot wound(s). My office will protect PSLF and hold PHEAA accountable for forcing these students further into debt.”. Guyer was taken into custody without incident at a residence in the Dillsburg, PA area.  He is charged with criminal homicide and burglary. The lawsuit filed says, “When PHEAA causes borrowers to lose the opportunity to make qualifying payments towards loan forgiveness due to its own servicing failures, PHEAA does not remediate borrowers accounts to account for the lost months. They said that Fedloan mismanages the debt of customers registered in the public loan forgiveness program. The simple answer is yes. The Better Business Bureau does not accept complaints for government agencies, this includes FedLoan Servicing. It’s nice to see someone trying to clean up this mess but as of now only residents of Massachusetts may benefit from the suit. Today is National Voter Registration Day! “That’s when I got a number for the Department of Education and called it and it had a voicemail stating that this program was shut down,” said Grier. Rather than fulfill its responsibilities to these borrowers, FedLoan Servicing has instead prevented student borrowers from making qualifying monthly payments that count towards loan forgiveness, shifting the consequences of its loan servicing failures onto the student borrowers themselves. Some people wonder whether or not FedLoan Servicing is a legitimate servicer. “These federal programs allow Americans from all backgrounds to dedicate their careers to serving others. YORK, Pa. (WHTM) -- The Hanover Borough Police Department announced the arrest of Patrick Charles Guyer, age 24 of Dillsburg, PA, in the murder of a 59-year-old Hanover man which took place earlier Thursday on the 300 block of High Street, in Hanover. In this unrelated case the U.S. Department of Education has been arguing that although their company assigned to manage the Public Service Loan Forgiveness (PSLF) program is making mistakes by saying people are qualified for forgiveness. 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