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

Blogs

Jul 31, 2020

Broken Promises: Investigating the Department of Education’s Employer Certification Process

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

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Press Releases

Apr 2, 2020

Statement from Mike Pierce, SBPC Policy Director, on the State of California’s Lawsuit Against the Pennsylvania Higher Education Assistance Agency (PHEAA)

California’s actions to hold PHEAA accountable for handling of federal TEACH grant comes amid an unprecedented campaign by the Trump Administration to block oversight by state regulators.

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Blogs

Mar 23, 2020

When the Student Loan System Fails, Payment Relief Becomes Just Another Empty Promise

Student loan companies were woefully unprepared to help borrowers grapple with the coronavirus long before tens of millions of borrowers were told they would need to contact their student loan servicer to secure payment relief. As borrowers in distress seek help over the coming days and weeks, the student loan system, including the large private-sector financial services firms at its center, is clearly not up to the task.

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Press Releases

Dec 20, 2019

Student Loan Giant Accused of Cheating Public Service Workers Moves to Block Montana Legal Services Program from Advocating for Low-Income Borrowers’ Rights

Student loan servicer PHEAA urged the Montana Supreme Court to reject a brief submitted to the court by the Montana Legal Services Association, the National Consumer Law Center, and Student Borrower Protection Center in order to preserve low-income borrowers’ access to justice.

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Blogs

Dec 18, 2019

Fighting for Borrowers’ Rights in Big Sky Country

For too long, the student loan industry has sought to sell judges on exotic legal theories to absolve these companies of the consequences of their abuses and deny borrowers their day in court. Today’s amicus brief, co-authored with Montana Legal Services and National Consumer Law Center, is the most recent in a series of amicus curiae briefs filed by SBPC pushing back on industry efforts to escape justice.

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Amicus Briefs

Dec 18, 2019

Amicus Brief Co-Authored with Montana Legal Services and National Consumer Law Center: Continue to Push Back on Student Loan Industry Efforts to Escape Justice

Brief supports Montanans demanding justice for abuses by PHEAA, a/k/a Fedloan Servicing—a large, student loan servicing company that deprived these borrowers of their rights under federal law to IDR and PSLF.

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Blogs

Nov 4, 2019

Roundup: Congress Continues to Raise Pressure on CFPB Director to Stand Up for Student Borrowers

Recently, lawmakers have been raising the pressure on the CFPB to fight for student loan borrowers, calling on Director Kraninger to get to work. Below is a recap of lawmakers’ recent exchanges with Director Kraninger around the Bureau’s failure to stand up for student loan borrowers and the need for the agency to do its job on behalf of borrowers.

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Blogs

Oct 24, 2019

What Betsy DeVos’s Brush with the Law Reveals About Our Broken Student Loan System

What Betsy DeVos’s Brush with the Law Reveals About Our Broken Student Loan System By Mike Pierce | October 24, 2019 Earlier this month, a federal judge in California held a hearing to consider whether Education Secretary Betsy DeVos should be held in contempt of court. At issue: student loan servicers’ and debt collectors’ continued […]

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Press Releases

Oct 3, 2019

California Advocates Renew Call to Pass AB 376 to Protect Teachers, Nurses and other California Student Loan Borrowers

Today, New York Attorney General Tish James sued student loan giant Pennsylvania Higher Education Assistance Agency, also known as PHEAA or FedLoan Servicing, for cheating teachers, nurses and other public service workers out of their right to loan forgiveness. In the face of mounting lawsuits and growing evidence of widespread predatory practices across the student loan industry, the organizations co-sponsoring AB 376, the California Student Borrower Bill of Rights, have renewed their call…

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Press Releases

Aug 19, 2019

Trump Administration’s Selection of Industry Insider for Nation’s Student Loan Watchdog Heightens Urgency to Pass AB 376 to Protect California Student Loan Borrowers

Trump Administration’s Selection of Industry Insider for Nation’s Student Loan Watchdog Heightens Urgency to Pass AB 376 to Protect California Student Loan Borrowers Recent Revolving-Door Hire is Further Proof Washington is Failing to Stand up for Borrowers The Trump Administration’s appointment on Friday of a student loan industry executive to serve as the nation’s top […]

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Federal Loan Servicing Abuse

Pennsylvania Higher Education Assistance Agency

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

What We’re Doing

Latest Work

Broken Promises: Investigating the Department of Education’s Employer Certification Process

Statement from Mike Pierce, SBPC Policy Director, on the State of California’s Lawsuit Against the Pennsylvania Higher Education Assistance Agency (PHEAA)

When the Student Loan System Fails, Payment Relief Becomes Just Another Empty Promise

Student Loan Giant Accused of Cheating Public Service Workers Moves to Block Montana Legal Services Program from Advocating for Low-Income Borrowers’ Rights

Fighting for Borrowers’ Rights in Big Sky Country

Amicus Brief Co-Authored with Montana Legal Services and National Consumer Law Center: Continue to Push Back on Student Loan Industry Efforts to Escape Justice

Roundup: Congress Continues to Raise Pressure on CFPB Director to Stand Up for Student Borrowers

What Betsy DeVos’s Brush with the Law Reveals About Our Broken Student Loan System

California Advocates Renew Call to Pass AB 376 to Protect Teachers, Nurses and other California Student Loan Borrowers

Trump Administration’s Selection of Industry Insider for Nation’s Student Loan Watchdog Heightens Urgency to Pass AB 376 to Protect California Student Loan Borrowers

EXPLORE MORE