Berman Tabacco, a national law firm representing consumers, is investigating potential violations of state and federal law by Missouri Higher Education Loan Authority (“MOHELA” or the “Company”).
About the Investigation
From March 2020 through September 2023, Congress imposed a COVID-19-related payment pause on all federal student loans. During that time, MOHELA’s loan portfolio grew rapidly, and it became one of the largest student loan servicers in the United States. Before monthly payments resumed, the Saving on a Valuable Education (SAVE) plan became available to borrowers – and remained available until it was blocked by a federal court injunction in July 2024. The SAVE plan was advertised as the most affordable student loan repayment option in history. However, many federal student loan borrowers have reported major servicing failures in MOHELA’s implementation of the SAVE plan between the post-pandemic “return to repayment” and the July 2024 injunction. These failures have allegedly led to significant financial harm for borrowers.
Berman Tabacco is investigating reports of unlawful practices by MOHELA in connection with the Saving on a Valuable Education (SAVE) plan. These practices allegedly include, but are not limited to: excessive delays or denials of applications to the SAVE plan; overcharged interest; failure to place loan accounts in forbearance; unjustified placements in the wrong student loan plan; and improper increases in monthly payments.
Contact
If you have information concerning this investigation or any questions, please fill out the form on this page.
About Berman Tabacco
For nearly four decades, Berman Tabacco has represented and recovered millions of dollars on behalf of consumers injured by corporate misconduct, including false advertising and deceptive marketing, product defects, data breaches, and unfair billing and lending practices. Most recently, Berman Tabacco applied its extensive complex class action experience to fight against unlawful and predatory lending practices. We served as lead counsel in several class action lawsuits brought on behalf of individuals who were alleged to have been exploited by illegal online payday lending schemes. The cases alleged that payday lenders issued loans in the name of companies established by Native American tribes, including American Web Loan, Plain Green and Great Plains Lending, in a brazen attempt to dodge usury laws and charge unlawful triple-digit interest rates.
The firm and its attorneys have been recognized for their work on behalf of plaintiffs, including by Chambers USA, Benchmark Litigation, which has ranked the firm as Highly Recommended and a Top Ten Plaintiffs; The Legal 500; U.S. News & World Report-Best Lawyers; The Daily Journal; Lawdragon; Who’s Who Legal; and Super Lawyers.
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Berman Tabacco
Solal Wanstok
One Liberty Square
Boston, Massachusetts
(800) 516-9926
Email: law@bermantabacco.com