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The American Federation Of Teachers Sues Missouri’s Higher Education Loan Authority - A Major Federal Student Loan Servicer, Which The AFT Alleges It “Misleads And Misinforms Borrowers”

Published Thursday, August 8, 2024
by Labor News Story Link To The Guardian
The American Federation Of Teachers Sues Missouri’s Higher Education Loan Authority - A Major Federal Student Loan Servicer, Which The AFT Alleges It “Misleads And Misinforms Borrowers”

Erum Salam at The Guardian reports the American Federation of Teachers (AFT), one of the largest Teachers’ Unions in the U.S., is suing a major Federal Student Loan Servicer, alleging it “misleads and misinforms borrowers.”  The suit alleges the Higher Education Loan Authority of the State of Missouri committed a series of abuses - including deflecting calls from borrowers and illegally deducting payments from borrowers’ bank accounts without their consent.  It also accuses the non-profit organization, which services Federal and Private Student Loans, of failing to send millions of borrowers their bills on time and causing them to fall behind on payments, also sending inaccurately higher bills, misinforming borrowers about key deadlines to remain in affordable payment plans, and denying eligible Public Service Workers student loan relief.

To Read This Labor News Report In Its Entirety, Go To: Teachers’ union sues major US federal student loan servicer, alleging ‘abuses’ | US unions | The Guardian

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