Warren applauds reported state probes of student loan servicer
BOSTON (SHNS) – Sen. Elizabeth Warren on Monday applauded reports that one of the nation's largest student loan servicers is under investigation by multiple attorneys general, including in Massachusetts.
Citing sources, Yahoo! Finance reported that states 'are scrutinizing issues similar to ones covered in a lawsuit filed last summer against' the Higher Education Loan Authority of the State of Missouri (MOHELA) by the American Federation of Teachers. The probes involve alleged mismanagement of accounts, the report said.
'MOHELA's mismanagement of Americans' student loans has resulted in a series of abuses for hundreds of thousands of borrowers,' Warren and Sens. Chuck Schumer and Bernie Sanders said in a joint statement.
The senators added: 'We've previously urged state Attorneys General to investigate MOHELA and pursue action to the fullest extent possible under the law, and reports of these new investigations are an important step toward making right by our nation's student loan borrowers — especially as the Trump Administration abandons and penalizes them. Americans deserve better than MOHELA's failures.'
At the end of January, MOHELA was responsible for handling accounts for 6.8 million federal direct loan borrowers, according to Yahoo! Finance, which reported that it was told by a MOHELA spokesman that the loan servicer 'does not comment on the existence or nonexistence of confidential investigations.'
A nonprofit with more than 40 years of experience, MOHELA in its 2023 year in review said it helped more than 6 million borrowers enter repayment, facilitated 3.1 million customer service calls, and processed $17 billion in federal loan forgiveness for more than 258,000 borrowers on behalf of the U.S. Department of Education.
Attorney General Andrea Campbell's office declined to comment about the Yahoo! Finance report that attorneys general in Washington, New York, Pennsylvania, Colorado, Illinois, Massachusetts and the District of Columbia 'have all filed so-called civil investigative demands seeking information from MOHELA.'
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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