MOHELA’s reckless business decisions have harmed student loan borrowers at every turn, from blocking public service workers from debt relief to deflecting borrowers’ calls for help.
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Read SBPC’s latest press release.
Read the public comment submissions and borrower stories demonstrating the life-changing impact that President Biden’s new proposal would have.
The CFPB action is an important reminder that private student loan borrowers are also plagued by predatory companies seeking to profit at their expense.
The Anti-Borrower states are at it again. A group of Republican-led states are now assailing the administration’s latest effort to make repaying student loans easier and more affordable. If the states succeed, it could throw the already overwhelmed federal student loan system into even more chaos.
Advocates urge administration to build on this progress and provide debt relief to borrowers due to servicing failures.
Cordray helped deliver debt relief to millions of people; Next FSA chief must prioritize consumer protection and hold private contractors accountable.
SBPC and SLLI host a virtual event featuring new research on the impact of student debt relief and borrowers’ experiences with the PSLF program.
Consent order is an affirmation of states authority to supervise the private companies that service student loans.
Lawsuits look to right-wing judges to overturn final rule, which frees millions from coercive contracts like Training Repayment Agreement Provisions (Traps) and is expected to generate more than $400 billion in increased wages.
The FTC’s decision to ban de facto non-competes, like stay-or-pay contracts and TRAPs, will empower millions of workers.
April 23, 2024, the FTC issued a final rule that bans the use of traditional and de facto non-compete agreements, which includes stay-or-pay contracts. See our fact sheet on TRAPs and more.
Austen Allred, pioneering “Income Share Agreement” loan shark and founder of for-profit coding bootcamp BloomTech (formerly “Lambda School”) is named in federal enforcement action; company and founder must cancel debt owed by some current and former students.
Biden Administration announces revised guidance, overturning a 32-year-old policy prohibiting incarcerated student loan borrowers from consolidating their student loans.
Proposal addressing hardship posed by student debt is expected to follow.
A new consumer protection lawsuit in Maine illustrates the risks to students and challenges for the higher education sector, and serves as a call to action for regulators.
The hearing follows an explosive investigative report by the Student Borrower Protection Center (SBPC) and the American Federation of Teachers alleging four in 10 people with a loan serviced by MOHELA have been impacted by servicing failures.
Mike Pierce of the Student Borrower Protection Center agreed that more accountability is needed, noting the federal government relies heavily on private contractors to service federal loans.
Student loan expert and borrower advocate Persis Yu will offer testimony; MOHELA CEO Scott Giles declines to publicly testify.