MOHELA to Testify Before Senate on Loan Forgiveness Mismanagement

Senator Elizabeth Warren leads the charge, highlighting servicing failures and the impact on borrowers.

MOHELA, a major federal student loan servicer, is set to testify before the Senate over alleged mismanagement of loan forgiveness processes.
Senator Elizabeth Warren has called the company to a hearing, citing failures in servicing and a negative impact on borrowers’ access to Public Service Loan Forgiveness (PSLF).
MOHELA has been fined $7.2 million by the Department of Education for sending incorrect balances to 2.5 million borrowers.
The company denies accusations, claiming misinformation and a commitment to assisting borrowers.
The hearing aims to address issues faced by borrowers as student loan payments resumed following a pandemic-related pause.