On July 22, 2024 AFT filed a groundbreaking consumer protection lawsuit against the Higher Education Loan Authority of the State of Missouri (MOHELA), the giant student loan servicing company under fire for mismanaging student loan accounts for millions of people. The AFT is represented by the Student Borrower Protection Center (SBPC), National Consumer Law Center (NCLC), and Selendy Gay PLLC.
In the lawsuit, the AFT alleges that MOHELA illegally overcharged borrowers on their monthly student loan bills, failed to timely process paperwork, and actively misled borrowers about their student loan accounts. These illegal practices could expose MOHELA to billions of dollars in liability because these practices may violate a range of federal and state laws.
UPDATE: On January 15, 2026 the AFT amended its complaint in its lawsuit against MOHELA. In its amended complaint, the AFT details the many ways in which the student loan servicing giant has continued to harm student loan borrowers since the lawsuit was first filed in July 2024—in violation of consumer protection law.
Read the Complaint: https://protectborrowers.org/mohela_lawsuit
Read the Press Release: https://protectborrowers.org/mohela-hit-with-groundbreaking-consumer-protection-lawsuit/
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Read the Amended Complaint: https://protectborrowers.org/wp-content/uploads/2026/01/D.D.C.-24-cv-02460-dckt-000050_000-filed-2026-01-15.pdf
Read the Amended Complaint Press Release: https://protectborrowers.org/mohela-hit-with-fresh-charges-of-ongoing-student-loan-mismanagement/