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Teachers Union Sues MOHELA Over Alleged Student Loan Mismanagement

Lawsuit claims MOHELA's practices have financially harmed millions of borrowers, calling for accountability and relief.

Overview

  • The American Federation of Teachers filed the lawsuit against MOHELA in the Superior Court of the District of Columbia.
  • MOHELA is accused of overcharging borrowers, providing inaccurate billing information, and failing to process paperwork promptly.
  • The lawsuit alleges MOHELA's actions have caused significant financial, mental, and emotional distress to borrowers.
  • AFT demands a jury trial and seeks relief for affected borrowers, citing violations of consumer protection laws.
  • Senators Schumer, Sanders, and Warren have renewed calls for action against MOHELA following the lawsuit.