American Education Services allegedly delayed ability of borrowers to enter loan repayment programs

By Jenie Mallari-Torres | Apr 18, 2018

PHILADELPHIA — An individual has filed a class action lawsuit against the Pennsylvania Higher Education Assistance Agency d/b/a FedLoan Servicing d/b/a American Education Services for alleged breach of contract, breach of fiduciary duty, fraud, negligent misrepresentation and unjust enrichment.

Arielle M. Anderson filed a complaint on April 2 in the U.S. District Court for the Eastern District of Pennsylvania, alleging that the defendant breached its duty of good faith and fair dealings.

According to the complaint, the plaintiff alleges that she and other similarly situated individuals have suffered financial harm as a result of the allegedly unlawful tactics of the defendant to delay the ability of borrowers to obtain loan forgiveness through the Public Service Loan Forgiveness Program, Teacher Education Assistance for College and Higher Education Program and income-driven repayment plans in an alleged effort to extend the duration of the loans and collect extra fees and interest. 

The plaintiff holds the defendant responsible for allegedly misleading and misrepresenting the options that were available to borrowers in order to increase its own profits.

The plaintiff requests a trial by jury and seeks judgment against the defendant, injunctive relief, monetary damages, punitive damages, restitution, the costs of the suit, attorneys’ fees, expert fees, interest and any other relief the court deems just. She is represented by Marc H. Edelson and Liberato Verderame of Edelson & Associates LLC in Newtown, Joshua H. Grabar of the Grabar Law Office in Philadelphia and Paul Scarlato and Brian Penny of Goldman Scarlato Penny PC in Conshohocken.

U.S. District Court for the Eastern District of Pennsylvania case number 18-cv-01378

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American Education Services U.S. District Court for the Eastern District of Pennsylvania

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