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Student loan servicer MOHELA tells advocacy group to stop ‘misleading claims’

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MOHELA which helps manage the Education Department’s student loan portfolio, sent a cease-and-desist letter to the Student Borrower Protection Center over a report on its business practices.

One of the nation’s largest student loan servicers is threatening legal action against an advocacy group that wrote a blistering report on its business practices.demanding the group remove a report published last month about the student loan company from its website. The company says the document, dubbed the

“Intentionally spreading false and misleading claims about MOHELA’s work on behalf of Federal Student Aid does nothing to improve the experience for students and borrowers,” the company said in a statement Thursday. It said the company “suffered serious damage” from the allegations, and said the advocacy group did not “afford it the opportunity to explain the true facts and correct SBPC’s many mistakes.

applications for the federal government’s Public Service Loan Forgiveness program. While the volume of applications fluctuates, the company said it has less than 15,000 new forms to process.

 

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