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Thursday, April 18, 2024
HomeBusinessSenate hearing to scrutinize MOHELA on student loans.

Senate hearing to scrutinize MOHELA on student loans.

The Missouri Higher Education Loan Authority (MOHELA), one of the largest student loan companies in the country, is set to face intense scrutiny at an upcoming congressional hearing. Lawmakers, led by Sen. Elizabeth Warren, are questioning the company’s management of a program for public service workers, as well as its alleged avoidance of customer service calls from borrowers. Critics claim that MOHELA mishandled borrowers’ return to repayment following the pandemic-related pause on payments, interest, and collections.

Despite denying any wrongdoing or neglect, MOHELA has come under fire from Congressional Democrats, particularly Sen. Warren, who accused the company of contributing to student loan borrowers’ difficulties. Warren specifically called out MOHELA for mishandling borrowers’ return to repayment after the COVID-19 pandemic pause. The company has been criticized for failing to send billing statements to 2.5 million borrowers on time, resulting in a $7.2 million penalty from the Education Department.

In response to the allegations and impending scrutiny, MOHELA’s top executive, Scott Giles, has been invited to testify at the congressional hearing scheduled for April 10. However, it remains uncertain whether Giles will attend the hearing. The company has not yet commented on the situation, but the fallout from the controversy has put MOHELA in the spotlight and raised concerns about its practices in handling student loans.

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