Publications & Presentations
February 22, 2021

Massachusetts AG Settles Lawsuit With Student Loan Servicer

Author, ARM Compliance Digest

The Attorney General of Massachusetts has announced a “first-of-its-kind” settlement with a student loan servicer that had been sued for allegedly engaging in unfair and deceptive practices that will require it to audit all 200,000 of its accounts in the state to determine if an error or misrepresentation was made and restore borrowers “to their rightful statuses” under a federal loan forgiveness program. If that is not possible, then the servicer — Pennsylvania Higher Education Assistance Agency (PHEAA) — must make monetary payments to borrowers.