May 4, 2020 / 7:01 PM / a month ago

Big student loan servicer must face New York abuse claims, U.S. judge rules

A large student loan servicer that manages a federal program intended to forgive student loans of longtime public servants must face a New York state lawsuit claiming it treated borrowers abusively, a U.S. judge ruled on Friday.

U.S. District Judge Edgardo Ramos in Manhattan rejected an argument by the Pennsylvania Higher Education Assistance Authority, which operates as FedLoan, that it was entitled to a form of sovereign immunity because it merely followed government orders in administering the Public Service Loan Forgiveness Program, where it has been the only servicer since 2012.

To read the full story on Westlaw Practitioner Insights, click here: bit.ly/2YtuMau

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