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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


  • Investigations
    Sep 20, 2021

    Documents from the Pennsylvania Higher Education Assistance Agency on Employer Certification Form Denials and Reasons for Denial

    In an effort to continue investigating ongoing breakdowns denying borrowers access to PSLF, the American Federation of Teachers, the National Education Association, and the SBPC uncovered thousands of pages of documents from the company the Department of Education contracts with to manage PSLF: PHEAA.

    More


  • Blogs
    Sep 9, 2021

    Newly Uncovered Internal Projections from a Department of Education Contractor Show PSLF Problems Will Persist Over Time

    New evidence uncovered through a Freedom of Information Act request indicates that without bold and swift action by the Secretary of Education and President Biden, PSLF is likely to fail the vast majority of borrowers working in public service over the long term.

    More


  • Press Releases
    Aug 6, 2021

    SBPC Statement on the Extension of the Student Loan Payment Pause

    Before the pandemic, our nation was in the midst of a $1.7 trillion student debt crisis with more than 1-in-4 borrowers already struggling. The Biden Administration has five short months to repair this badly broken system.

    More


  • Blogs
    Jul 14, 2021

    What Borrowers Need to Know About the End of PHEAA’s Federal Student Loan Servicing

    Accounts for 8.5 million federal student loan borrowers will have to be transferred to a new servicer in a few short months. Additionally, unless the Biden Administration takes action to extend the payment pause on federal student loans, this large transfer will take place just after payments for tens of millions of borrowers are expected to resume at the end of September.

    More


  • Blogs
    Jul 9, 2021

    Borrowers Need the Department of Education to Answer These 14 Key Questions and Many More as PHEAA Exits Federal Student Loan Servicing

    The embattled student loan giant known as PHEAA announced that it intends to exit its role as a federal student loan servicer. Here are just 14 of the many questions that demand immediate answers from PHEAA and the Department of Education.

    More


  • Press Releases
    Jul 8, 2021

    SBPC Statement on PHEAA Terminating Role as Top Federal Student Loan Servicer

    Today, the student loan servicer Pennsylvania Higher Education Assistance Agency (PHEAA), also known as FedLoan Servicing, announced that it would no longer continue to serve as the top loan servicer for the U.S. Department of Education.

    More


  • Blogs
    Apr 8, 2021

    The Student Loan Industry Failed Borrowers During the Pandemic Even More than We Knew. The Biden Administration Must Act.

    Our new report reveals tens of thousands of newly uncovered instances in which federal student loan servicers misreported borrowers’ repayment status to credit reporting agencies in apparent violation of the CARES Act and consumer financial laws such as the Fair Credit Reporting Act.

    More


  • News Clips
    Oct 3, 2020

    FedLoan’s board needs student advocates, finance experts, Pa. auditor say in new PHEAA report

    Auditor General Eugene DePasquale says Pennsylvania’s student loan servicing agency stands out for more than its size: Sixteen of its 20 board members are state legislators, ranking it among the most politician-heavy public boards in the nation, and it is lacking in outside financial experts.

    More


  • Press Releases
    Aug 12, 2020

    AFT and SBPC Uncover New Evidence of Mismanagement and Abuse in Scandal-Plagued Public Service Loan Forgiveness Program

    AFT and the SBPC released an investigative report exposing new instances of mismanagement and abuse in the scandal-plagued Public Service Loan Forgiveness program.

    More


  • Blogs
    Aug 11, 2020

    The Internal Government Communications and Records Exposing the Broken Employer Certification Process

    In conjunction with the release of the report, “Broken Promises: Employer Certification Failure,” the SBPC released two new sets of documents and records that have never before been available to the public.

    More

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