HARRISBURG – A Washington, D.C. woman alleges she has suffered financial harm because of the mismanagement of her student loans.

Arianne Gallagher filed a complaint on behalf of others similarly situated on Dec. 29, 2017, in the U.S. District Court for the Middle District of Pennsylvania against Pennsylvania Higher Education Assistance Agency, doing business as FedLoan Servicing, alleging violation of the Pennsylvania Unfair Trade Practices and Consumer Protection Law, breach of contract and other counts.

According to the complaint, the defendant is a student loan servicing company and services the plaintiff's loans. She alleges that since her graduation from law school in 2011, she has made continuous, on-time monthly payments. She alleges that when she filed her income-driven repayment request forms, the defendants placed her loans into forbearance three separate times instead of processing her form.

The plaintiff holds Pennsylvania Higher Education Assistance Agency responsible because the defendant's alleged actions purportedly denied her of the opportunity to use alternative repayment plans, denied her reduced interest rates and capitalization of accrued interest.

The plaintiff requests a trial by jury and seeks to enjoin the defendant, all damages, interest, court costs and any further relief the court grants. She is represented by Gary F. Lynch and Kevin W. Tucker of Carlson Lynch Sweet Kilpela & Carpenter LLP in Pittsburgh; Bryan L. Bleichner and Gary L. Luloff of Chestnut Cambronne PA in Minneapolis, Minnesota; Brian C. Gudmundson and Michael J. Laird of Zimmerman Reed LLP in Minneapolis, Minnesota; and Arthur M. Murray of the Murray Law Firm in New Orleans, Louisiana.

U.S. District Court for the Middle District of Pennsylvania case number 1:17-cv-02416-JEJ

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U.S. District Court for the Middle District of Pennsylvania




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