CFPB v. Pennsylvania Higher Education Assistance Agency Update

On October 1, 2024, the Federal District Court for the Middle District of Pennsylvania overruled an investor’s objections to the judgment and entry of stipulated orders that had been filed in that court on May 6, 2024, to settle the case of Consumer Financial Protection Bureau v. Pennsylvania Higher Education Assistance Agency, et al. Accordingly, the motion for judgment was granted and the court will enter two proposed judgments, one as to Pennsylvania Higher Education Assistance Agency (“PHEAA”) and the other as to the National Collegiate Student Loan Trusts (the “Trusts”), that would generally require PHEAA and the Trusts to implement adequate servicing policies, pay monetary redress to affected borrowers and civil monetary penalties, and submit to oversight by the Consumer Financial Protection Bureau.

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