Legal Advocates Expose Student-Loan Company's Violation of Debt Relief Settlement

Student-loan borrowers who were part of a 2022 settlement are still waiting for their relief to be processed, as a legal advocacy group claims that a student-loan company, MOHELA, is not implementing the settlement terms correctly. Some borrowers within the settlement have been told they have to resume payments in October, despite instructions from the Education Department to place them on forbearance until their relief is processed. The group alleges that this violates the court-approved settlement agreement and applicable regulations and has requested MOHELA to work with the Education Department to rectify the situation. Advocacy groups and lawmakers have expressed concerns about the preparation of servicers as millions of borrowers transition back into repayment.