PHILADELPHIA – Three individuals have filed a class-action lawsuit against Pennsylvania Higher Education Assistance Agency over the handling of their education loans.
Adam Morris, Arthur Burkle and Denise Graham filed a complaint on behalf of all others similarly situated on Jan. 8 in the U.S. District Court for the Eastern District of Pennsylvania against Pennsylvania Higher Education Assistance Agency, doing business as Fedloan Servicing and American Education Services, citing Pennsylvania's Unfair Trade Practices and Consumer Protection Law and other counts.
According to the complaint, the plaintiffs allege that the defendant has "implemented a scheme ... to boost revenue by extending the duration of loans in its portfolio" by delaying to process Public Service Loan Forgiveness and Teacher Education Assistance for College and Higher Education program and income-driven repayment plan applications and by improperly placing borrowers into deferment or forbearance status.
The plaintiffs allege they have been injured by the defendant's practices.
The plaintiffs request a trial by jury and seek damages, punitive damages, treble damages, injunction against the defendant, disgorgement, restitution, court costs, interest, and any further relief the court grants. They are represented by Peter D. St. Phillip, Christian Levis, Roland R. St. Louis III and Anthony M. Christina of Lowey Dannenberg PC in West Conshohocken and White Plains, New York.
U.S. District Court for the Eastern District of Pennsylvania case number 2:18-cv-00031-CDJ