Senator Warren Demands Answers: MOHELA CEO Summoned to Congress Over Alleged Student Loan Mishandling

Senator Elizabeth Warren Requests the CEO of MOHELA Appear Before the Senate Banking Committee

A hearing to examine MOHELA’s approach to student loan forgiveness and repayment

In a letter he submitted on Monday, MOHELA’s Scott Giles received an invitation from Senator Elizabeth Warren of Massachusetts to testify before the Senate Banking Committee on April 10, as stated in the Business Insider report. The hearing, “MOHELA’s Performance as a Student Loan Servicer,” aims to assess MOHELA’s ability to oversee the Public Service Loan Forgiveness Program‘s effectiveness and billing practices since the program’s start of the fall repayment period.

Senator Elizabeth Warren Calls for MOHELA CEO to Testify Before Congress Amid Concerns Over Student Loan Servicing (PHOTO: Bankrate)

 

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MOHELA Under Examine: Sanctions by the Education Department Raise Questions About Student Loan Servicer Accountability

MOHELA faced criticism in October after it was sanctioned by the Education Department for breaching its contract, becoming the first federal servicer to experience such a measure. When bill payments resumed after a three-year break, the department confiscated more than $7 million from MOHELA because the organization neglected to provide billing statements to borrowers on time. Warren’s request that Giles testify before Congress highlights the mounting doubts over the ability of student loan servicers to assist with borrower repayment and enforce compliance with government loan forgiveness programs.

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