1. Home
  2. /
  3. Politics
  4. /
  5. Borrowers vs. MOHELA –...

Borrowers vs. MOHELA – The Student Loan Forgiveness Battle

Unfulfilled Promises

Credit: DepositPhotos

Two borrowers, Jennifer Joy and Misty Thomas, took legal action against the Missouri Higher Education Loan Authority (MOHELA) with a lawsuit filed on Monday. Their claim alleges that MOHELA has mishandled their applications for student loan forgiveness under the Public Service Loan Forgiveness Program (PSLF).

Meeting the PSLF Requirements

Credit: DepositPhotos

Joy and Thomas contend they diligently met the criteria required for student debt relief under the PSLF. This included working in government or specific nonprofit roles while diligently making 120 consecutive monthly loan payments.

Read More: Kaitlan Collins Challenges False Claim Made by Trump Attorney Regarding Jan. 6 Incident

Repeated Application Submissions

Credit: DepositPhotos

Joy and Thomas assert that their applications have been submitted multiple times since 2022 despite their efforts. However, they have faced the frustrating predicament of MOHELA continually instructing them to restart their loan payments.

Breach of Contract and Consumer Protection Violations

Credit: DepositPhotos

The lawsuit against MOHELA accused the loan servicer of breaching its contract and violating specific consumer protection statutes. It underscores the deep dissatisfaction felt by borrowers who expected the PSLF to provide relief.

The Borrowers’ Perspective

Credit: DepositPhotos

Joseph Kenney, a partner at Sauder Schelkopf LLC, passionately represents the borrowers in their legal battle. He emphasizes that his clients, along with numerous other borrowers, embarked on careers in public service, expecting to benefit from the PSLF’s loan forgiveness after a decade of dedicated service.

Read More: Tensions Rise as DeSantis and Newsom Clash on COVID-19 Policies

Unfulfilled Promises

Credit: DepositPhotos

Kenney underlines the disappointment of these individuals who have faithfully fulfilled their obligations. Instead of receiving the promised benefits of the PSLF, they are now unfairly burdened with extra loan payments through no fault.

The Long-standing PSLF Critique

Credit: DepositPhotos

The Public Service Loan Forgiveness Program (PSLF) has long received criticism from borrowers and advocates. They cite needing help to obtain the relief they are entitled to once they fulfill the program’s requirements.

Challenges in Processing Applications

Credits: DepositPhotos

MOHELA issued a warning last year, citing delays in processing applications. These delays were attributed to changes made by the White House that expanded the pool of borrowers eligible for relief, further complicating an already convoluted process.

Also Read: Republicans Raise Concerns About Treatment of Mayor Adams by Federal Investigation

Seeking Official Responses

Credit: DepositPhotos

The Hill has contacted MOHELA and the Department of Education, seeking their comments on this ongoing issue. The outcome of these inquiries will shed light on the official stance regarding the borrowers’ claims.

A Path to Resolution

Credit: DepositPhotos

While the legal battle rages on, borrowers like Joy and Thomas, who dedicated themselves to public service, continue to grapple with the unfulfilled promise of student loan forgiveness. Their struggle represents a broader challenge within the student loan landscape.

Advocating for Borrower Rights

Credit: DepositPhotos

The lawsuit against MOHELA serves as a poignant reminder of the importance of safeguarding borrower rights and ensuring the promises made through programs like PSLF are honored. It underscores the need for clarity and efficiency in student loan forgiveness.

Read Next: Trump Supporter Requests Early Release, Citing Manipulation by Former President