The Inner Details of MOHELA Lawsuit

MOHELA which stands for Missouri Higher Education Loan Authority has in the recent days faced a serious lawsuit over alleged misconduct. In the lawsuit famously known as the MOHELA student loan servicing lawsuit, MOHELA is accused of several student loan servicing related misconduct issues.

The Key Allegations in the MOHELA Student Loan Servicing Lawsuit

The MOHELA student loan servicing lawsuit is quite complex with a number of serious allegations in it. In the lawsuit, MOHELA student loan is accused of a number of offences which include illegal overcharging.  On this accusation, MOHELA student loan is accused of overcharging its borrowers on monthly student loan bills.

The other accusation the student’s financial institution is facing is processing delays. Here, MOHELA student’s loan is accused of failure to process student’s paperwork on time, something which resulted in a number of issues for its borrowers. Apart from those two accusations, MOHELA student’s loan servicing lawsuit is also accused of misleading its borrowers by providing information that was not factually correct regarding loan accounts and some of the available repayment options.

The last accusation against the lender is the issue of obstructing loan forgiveness. On this one, MOHELA is accused of hindering its borrowers from accessing the necessary loan forgiveness programs like the public service loan forgiveness and others.  The lender is alleged to have done this with the sole aim of denying its borrowers the privilege of getting forgiveness for their loan repayment and other related charges.

Major Impacts on the Borrowers

MOHELA lawsuit had a good number of accusations in it.  They included processing delays, hindering loan forgiveness among others.  AFT which is the body that filled the MOHELA lawsuit claims that the actions of MOHELA were deliberate and had a gross negative impact on students?

AF claims that the actions of MOHELA resulted in a huge financial hardship as well as frustrations for millions of borrowers. The MOHELA student lawsuit therefore seeks to hold MOHELA accountable for their actions and get some relief for its affected borrowers.

MOHELA Comments on the MOHELA Lawsuit

MOHELA is yet to issue any comments regarding the MOHELA student loan servicing lawsuit at least going by the seen documents and records. Considering that the lawsuit is still in its infant stages, there is a good chance the student’s lender will make a comment on the matter soon. Experts who are aware of the matter believe that the silence by MOHELA is deliberate as the institution is still weighing its options before deciding which way to go.

The accusations against MOHELA are many and heavy and so it is expected that the lender will take time before making comments on the matter.  When and what the comments are likely to be remains unknown at this point.

The Status of the MOHELA Lawsuit

The MOHELA lawsuit is still in its early stages with more details on the lawsuit likely to come in the days ahead.  There is even no clarification regarding what AFT is likely to demand in court as compensation for the alleged violations should MOHELA be found   guilty of the alleged charges.

Conclusion

The MOHELA student loan servicing lawsuit is a complex matter touching on various violations on student loans.  The lawsuit is quite detailed but still in its infant stages with more details on it likely to come in the following days.