Fedloan Servicing Gets Sued Again

Fedloan Servicing gets sued again in Pennsylvania State Court, Fedloan is the often embattled federal student loan servicing agency. According to documents we managed to dig up the case involves someone who attempted to lawfully apply for Public Service Student Loan Forgiveness and met roadblock after roadblock by Fedloan Servicing.

A Lawsuit against FedLoan

“An individual has filed a class action lawsuit against the Pennsylvania Higher Education Assistance Agency d/b/a FedLoan Servicing d/b/a American Education Services for alleged breach of contract, breach of fiduciary duty, fraud, negligent misrepresentation and unjust enrichment.

Arielle M. Anderson filed a complaint on April 2 in the U.S. District Court for the Eastern District of Pennsylvania, alleging that the defendant breached its duty of good faith and fair dealings.

Fedloan Servicing gets Sued Again - Fedloan Logo

According to the complaint, the plaintiff alleges that she and other similarly situated individuals have suffered financial harm as a result of the allegedly unlawful tactics of the defendant to delay the ability of borrowers to obtain loan forgiveness through the Public Service Loan Forgiveness Program, Teacher Education Assistance for College and Higher Education Program and income-driven repayment plans in an alleged effort to extend the duration of the loans and collect extra fees and interest.

The plaintiff holds the defendant responsible for allegedly misleading and misrepresenting the options that were available to borrowers in order to increase its own profits.

The plaintiff shall request trial by jury and seek a verdict against the defendant, an injunction remedy, monetary damage, penalty damages, restitution, proceedings costs, legal expenses, fees for experts, interest and any other remedies which the court judges to be fair. She is represented by Marc H. Edelson and Liberato Verderame of the Newtown branch of Edelson, and Joshua H. Grabar from the Philadelphia Grabar Law Office, and Paul Scarlato and Brian Penny from the Conshohocken branch of the Goldman Branch of Scarlato Penny.”

Related: How To Qualify For Student Loan Forgiveness

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Lance Waverly
Lance Waverly is the director of news at Refinance Student Loans. He also is an avid writer at QuoteYeti where he covers topics such as life insurance, and other other financial topics.
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