Schumer, Sanders, Warren Joint Statement on MOHELA Student Loan Mismanagement Lawsuit

Washington, D.C. – U.S. Senate Majority Leader Chuck Schumer (D-NY), Senate HELP Committee Chair Bernie Sanders (D-VT), and Senator Elizabeth Warren (D-MA) released the following statement urging the Department of Education to take action against MOHELA for allegedly overcharging and misleading student loan borrowers:

“MOHELA has a long history of prioritizing their own profits over servicing hard-working borrowers, and today’s lawsuit from AFT outlines the extent of their greed and malfeasance. AFT’s sweeping suit alleges that MOHELA has overcharged and misled borrowers, causing hardship and confusion for millions.

“Earlier this year, we called on the Consumer Financial Protection Bureau and state Attorneys General to investigate MOHELA and pursue action to the fullest extent under the law. Given the findings from AFT’s lawsuit brought forward today, we urge the Department of Education to take action to hold MOHELA responsible for its harms and to protect borrowers from future abuses.”

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