Photo illustration by The Chronicle
One of the handful of organizations that has a contract to service federal student loans announced today that it would not renew that agreement at the end of the year.
For some politicians, the announcement from the Pennsylvania Higher Education Assistance Agency, known as Pheaa, is good news for student borrowers who, they say, have been misled and mistreated by the company.
“Millions of loan borrowers can breathe a sigh of relief today knowing that their loans will no longer be managed by Pheaa, an organization that has robbed untold numbers of public servants of debt relief and was recently caught lying to Congress about its atrocious record of fines and penalties,” Sen. Elizabeth A. Warren, Democrat of Massachusetts, said in a news release.