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Major Student Loan Servicer Failed 6.5 Million Borrowers, Says Amended Lawsuit [Forbes]

Nelnet, Inc. (NNI) 
US:NYSE Investor Relations: nelnet.com/investors
Company Research Source: Forbes
... More Getty Images for We, The 45 Million A major student loan servicer contracted with the U.S. Department of Education to administer federal student loans is facing accusations of widespread misconduct in a new amended complained filed in federal court last week. The American Federation Teachers, a national teachers union, filed an amended lawsuit against Missouri-based MOHELA on Thursday, alleging that the agency has effectively failed student loan borrowers. The complaint argues that MOHELA gives out incorrect or misleading information to borrowers, miscalculates student loan payments , and engages in practices such as call deflection that make it difficult or impossible for borrowers to resolve problems with their federal student loans. “When we first sued MOHELA 18 months ago we exposed how it had abandoned its role to help borrowers pay down debt and instead redirected into a Kafkaesque rabbit hole of denial and delay to pad its own profits,” said AFT President Rand Show less Read more
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