Union calls for investigation into 'potential mismanagement and corruption' at Department of Education
Source: Yahoo! Finance
Union calls for investigation into 'potential mismanagement and corruption' at Department of Education
Multiple states are investigating student loan servicer MOHELA. Meanwhile, the Trump Administration has pulled back on oversight.
Jordan Weissmann
Wed, May 7, 2025 at 2:45 PM EDT·4 min read
A national teachers' union and an activist group are calling for internal government investigations into “potential mismanagement and corruption” at the Department of Education and Consumer Financial Protection Bureau following their recent moves to roll back oversight of the $1.6 trillion student loan system.
In a letter first shared with Yahoo Finance, the American Federation of Teachers (AFT) and the Student Borrower Protection Center urge the agencies’ inspectors general to look, in particular, at whether Trump administration officials tried to sandbag a recently revealed set of state-level investigations into the student loan servicer MOHELA.
“The existence of these open investigations, which were not previously public, sheds new light on the alleged abuses committed by the scandal-plagued student loan giant and suggests that officials at the highest levels of the Trump Administration may be working to deny justice to borrowers,” the letter states.
Last month, Yahoo Finance reported that MOHELA has been under scrutiny by a group of nine state attorneys general and regulators over alleged mistreatment of borrowers. Several former Department of Education officials said they were worried those inquiries could be slowed down thanks to recent mass layoffs at the agency, which effectively eliminated its offices responsible for supervising student loan servicers.
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Read more: https://news.yahoo.com/news/finance/news/union-calls-for-investigation-into-potential-mismanagement-and-corruption-at-department-of-education-184501477.html