On April 24, 2024, the California Department of Financial Protection and Innovation (DFPI) announced that it had entered into a consent order with the Higher Education Loan Authority of the State of Missouri (MOHELA), resolving allegations that MOHELA failed to timely provide DFPI with information detailing the contact information of certain Californian student loan borrowers.
On April 19, 2022, the United States Department of Education announced it would conduct a one-time revision of Income-Driven Repayment (IDR) payments to address past inaccuracies. Pursuant to such efforts, the DFPI sought California borrower contact information from 15 loan servicers that service commercially-held Federal Family Education Loans (FFEL), Higher Education Assistance Loans (HEAL), and Perkins loans, including MOHELA. According to DFPI, MOHELA violated the California Student Loan Servicing Act (SLSA) and California Consumer Financial Protection Law (CCFPL) by failing to timely provide this borrower information. Under the consent order, MOHELA agreed to pay a $27,500 administrative penalty.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.