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  1. What We Do
  2. Federal Student Loans
  3. Federal Loan Servicing Abuse
  4. Pennsylvania Higher Education Assistance Agency

Pennsylvania Higher Education Assistance Agency

We are fighting to hold PHEAA accountable for years of mismanagement and abuse.

Pennsylvania Higher Education Assistance Agency (PHEAA) was once one of the largest student loan companies in the country, servicing loans for the federal government under the brand FedLoan Servicing. In 2021, PHEAA surrendered its federal student loan servicing contract, transferring loans it serviced to MOHELA. PHEAA continues to service student loans owned by private creditors, including loans guaranteed by the federal government, under its own name and under the brand American Education Services.

What We’re Doing

PHEAA’s history of mismanagement, abuse, and unlawful conduct has made it a target for public enforcement actions, private lawsuits, and congressional oversight. See below to learn more about our work to hold PHEAA accountable.

Latest Work


  • Press Releases
    Feb 27, 2025

    Press Call Advisory for Friday, February 28: Former Consumer Protection Officials to React to Trump CFPB Dismissing Slew of Enforcement Actions and Resulting Harm to Americans

    Tomorrow at 11:00 a.m. ET, top experts from the Student Borrower Protection Center (SBPC) and Consumer Federation of America (CFA) will join the former head of enforcement from the Consumer Financial Protection Bureau (CFPB) to respond to the news that Trump leadership at the CFPB dismissed a slew of enforcement actions totaling billions of dollars in consumer harm. The cases include:

    More


  • Press Releases
    Feb 27, 2025

    CFPB Drops Enforcement Action Against Predatory Student Loan Company

    Today, the Consumer Financial Protection Bureau (CFPB) withdrew its lawsuit against the Pennsylvania Higher Education Assistance Agency (PHEAA), the giant student loan servicer whom the Bureau sued in 2024 for illegally pursuing borrowers for debts that had been discharged in bankruptcy.

    More


  • Blogs
    Feb 10, 2025

    Elon and DOGE Are Attempting To Illegally “Delete” the CFPB, Here Is Why This Matters To Student Loan Borrowers

    Without the CFPB, financial predators will get free rein.

    More


  • Blogs
    Jan 22, 2025

    A Warning for the New Congress: Don’t Take a Neoliberal Turn on Student Borrower Protection

    Students and education access should not be at the mercy of risky credit markets.

    More


  • Press Releases
    May 6, 2024

    Advocates Applaud CFPB For Taking Action Against Private Student Loan Trusts and Servicer Abuses and For Putting Money Back in the Hands of Borrowers

    The CFPB action is an important reminder that private student loan borrowers are also plagued by predatory companies seeking to profit at their expense.

    More


  • Press Releases
    Sep 19, 2023

    CFPB Rejects Effort by Disgraced Student Loan Company to Rob Borrowers of Bankruptcy Rights

    Newly released documents show Pennsylvania Higher Education Assistance Agency (PHEAA) sought to block federal inquiry into private student loan collection scheme.

    More


  • Letters & Memos
    Mar 30, 2022

    PHEAA Borrower Voices on the Incomplete Promise of Relief through IDR

    This memo details how borrowers such as those whose loans have been serviced by the Pennsylvania Higher Education Assistance Agency (PHEAA), also known as AES and FedLoan Servicing, will still be left behind if fixes to Income-Driven Repayment (IDR) do not provide credit towards loan forgiveness for borrowers’ time in default, forbearance, and deferment.

    More


  • Press Releases
    Dec 6, 2021

    Advocates Warn: Student Loan Companies Seek to Undermine PSLF Overhaul to Pad Profits

    The SBPC and a coalition of the nation’s largest unions representing millions of public service workers sent letters to large student loan companies demanding immediate action to ensure successful implementation of ED’s recent overhaul of PSLF.

    More


  • Letters & Memos
    Nov 3, 2021

    Letter to PHEAA Warning of Potential Consumer Protection Violations Related to PSLF Implementation

    In a letter to PHEAA, the SBPC warns the company that providing incorrect, misleading information to borrowers related to the recent overhaul of the Public Service Loan Forgiveness (PSLF) program violates federal and state consumer financial protections.

    More


  • Blogs
    Sep 30, 2021

    Millions of Low-Income Student Loan Borrowers Deserve Better than Another Dead End

    We now know that a generation of student loan borrowers remain trapped in this broken system and that, without structural changes by ED, IDR will not offer a viable way out for these borrowers in the future.

    More

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