Congresswoman Bush Demands MOHELA Halt Actions Interfering with Student Debt Relief
MOHELA efforts to halt relief would rob people in Missouri of over $12.7 billion in relief
Washington, D.C. (Oct. 18, 2022) — Congresswoman Cori Bush (MO-01) sent a letter to Scott Giles, the Executive Director 0f Higher Education Loan Authority of the State of Missouri (MOHELA) demanding the company halt efforts to block millions of people from accessing economic relief through the Biden Administration’s historic student loan debt relief program. MOHELA has remained silent as six Republican states issued a lawsuit on the company’s behalf in an attempt to interfere with borrowers’ right to cancellation. Additionally, the Congresswoman highlights reports of understaffed call centers, long wait times, and processing delays faced by borrowers trying to access relief from MOHELA. As the sole servicer for borrowers pursuing a Public Service Loan Forgiveness (PSLF) Waiver, these borrowers are forced to subject themselves to these malpractices in order to get relief.
“I will not stand by and watch as your company works on multiple fronts to block borrowers relief they are entitled to in a clear attempt to continue profiteering off of the student loan debt crisis. It is time for your company to stand with borrowers once and for all,” wrote Congresswoman Bush. “To date, your company has remained silent about the legal efforts filed on your behalf to halt President Biden’s student debt cancellation program. The American people, including the millions of borrowers whose economic livelihoods now hang in the balance, deserve to know where you stand.”
A copy of the letter can be found HERE.
Congresswoman Bush asked for a response from MOHELA by October 28th, specifically requesting clarity on:
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the extent of MOHELA’s involvement with the lawsuit, as well as the company’s general relationship with the Missouri Attorney General’s office,
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if MOHELA supports efforts to block President Biden’s student loan debt relief plan, and
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steps MOHELA is taking to ensure that the company is not intentionally making it difficult for PSLF recipients to obtain debt relief.
The Missouri Higher Education Loan Authority (MOHELA) is among the largest student loan companies in the world. MOHELA handles more than one out of every ten dollars of all outstanding student loan debt. In Missouri alone, approximately 825,000 borrowers owe nearly $30 billion in federal student loan debt.
While in Congress, Congresswoman Bush has been leading the charge in calling for President Biden to address the student loan debt crisis. This past May, she joined the Congressional Black Caucus in calling on President Biden to take action on canceling student debt, and has consistently championed the need to cancel the more than $1.9 trillion in student loan debt. In August, the Biden-Harris Administration formally announced their Student Loan Debt Relief Plan which would cancel up to $20,000 for people who went to college on Pell Grants and up to $10,000 for non-Pell Grant recipients who earn less than $125,000 ($250,000 for married couples).
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Congresswoman Cori Bush sits on the House Judiciary and Oversight Committees, serves as the Progressive Caucus Deputy Whip, and proudly represents St. Louis as a politivist in the halls of the United States Congress.