Berman Tabacco represents plaintiffs in an action against Missouri Higher Education Loan Authority (MOHELA), a national federal student loan servicer. The complaint alleges that MOHELA breached its contracts and violated certain state consumer protection statutes in connection with the Saving on a Valuable Education (SAVE) student loan repayment plan. The SAVE plan was rolled out while student loan payments were paused during the COVID-19 pandemic in July 2023. A year later, it was curtailed by a federal court injunction, though borrowers’ loans were not to accrue interest between July 18, 2024, and July 31, 2025.
The SAVE plan contained significant benefits, including nonaccrual of interest and lower monthly payments. Thousands of student loan borrowers applied for the SAVE plan but MOHELA: (1) failed to automatically provide borrowers on the Revised Pay As You Earn (REPAYE) plan with the benefits of the SAVE plan; (2) failed to process SAVE plan applications within 60 days of submission or place applicants into forbearance; and (3) improperly continued to charge and collect interest from SAVE plan borrowers. These borrowers missed out on significant student debt relief because of MOHELA’s servicing failures.
The complaint was filed on January 8, 2026, in the United States District Court for the Eastern District of Missouri and is available HERE.