Higher Ed Dive – Latest News
American Federation of Teachers (AFT) sues loan servicer MOHELA, accusing it of harming borrowers and neglecting responsibilities. AFT alleges MOHELA’s failures led to 800,000 borrowers becoming delinquent on loans and 280,000 overcharged due to incorrect calculations. MOHELA denies allegations, vows to defend itself. Education Department transferred over 1 million borrowers from MOHELA to another servicer. AFT seeks trial and injunctive relief against MOHELA.