PHEAA also has FedLoan Servicing under its portfolio, which PHEAA created to act as a servicer for various federal loan programs. The loan servicer, the Pennsylvania Higher Education Assistance Agency, better known as … “It’s not just that PHEAA is struggling to service federal student loans, like those in the Public Service Loan Program program. Features within myfedloan.org depend on javascipt to be fully PHEAA was granted a student-based loan servicer permit because of the DOB in 2017 june. PHEAA currently services more than $360 billion in … Default on a Federal Family Education Loan Program (FFELP) loan occurs when you fail to make payments and your loan reaches 270 days of delinquency. PHEAA was issued a student loan servicer license by the DOB in June 2017. Federal Loan Consolidation. PHEAA was founded in 1963 to manage loans granted through the Federal Family Education Loan Program. PHEAA conducts its student loan servicing operations commercially as American Education Services and for federally-owned loans as FedLoan Servicing. UNIVERSITY PARK – The Pennsylvania Higher Education Assistance Agency, or PHEAA, will suspend participation as a federal Stafford Loan lender in the Federal Family Education Loan … Today, FedLoan and AES handle about 27% of the DOE’s Those reforms resulted in more than $77 million in savings. Later in 2017, in connection with the DOB’s examination of PHEAA, the DOB requested certain documents concerning Direct Loans serviced by PHEAA. UNIVERSITY PARK – The Pennsylvania Higher Education Assistance Agency, or PHEAA, will suspend participation as a federal Stafford Loan lender in the Federal Family Education Loan … Provided By. U.S. Sovereign Risk: The trust collateral comprises 100% Federal Family Education Loan Program (FFELP) loans, with guaranties provided by eligible guarantors and reinsurance provided by the U.S. Department of Education (ED) for at least 97% of principal and accrued interest. But they say there’s little that distinguishes Navient from PHEAA, which has morphed from a home-grown scholarship fund for Pennsylvania students into the nation’s second-largest loan servicer. The program is designed to help public service workers like teachers and police officers. Copyright © 2020 Pennsylvania Higher Education Assistance Agency (NMLS# 1619466 NMLS Consumer Access). Massachusetts' allegations center around "several issues" related to PHEAA's federal loan contracting services, and PHEAA is trying to determine how much money Healey's office claims is … AES is a loan servicer for loans made under the Federal Family Education Loan Program. Later in 2017, relating to the DOB’s study of PHEAA, the DOB requested documents that are certain Direct Loans serviced by PHEAA … PHEAA executives admitted Thursday that the agency’s association with the reviled federal program has bruised its public image. It also has a loan servicing operation, for student loans that it owns and for lenders under contract. PHEAA is a major provider of student loan services at the national level. Providing affordable access to higher education. 2  For Federal Loans If your loan is guaranteed by PHEAA: Read our PHEAA Default FAQ to learn more about default and the consequences it can have on your federal student loans. PHEAA's Marla Kane briefly explains some of the many benefits of a federal student loan compared to a private student loan , which typically come … It also has a horrendous track record as a servicer for private student loans. The PA Forward Student Loan Program is a credit-based loan program. Government. "We welcome the federal government's confidence in PHEAA to provide services to borrowers of federally-owned debt," said PHEAA Board Chairman, William F. Adolph. Public service loan Forgiveness program administered by the U.S. Department of Education and Education... To 12 loans is right for you, you won ’ t find federal or private AES.! S inception, it had a modest 5,000 student loans owned by the U.S. Department of.. On qualifying federal loans may differ asking for repayment immediately, as soon as the when! June 30, roughly 28 % of the DOB in 2017 June for. Is designed to help public service workers like teachers and police officers into single... The legislation reduces the six-year Board term to four years loans don ’ t find or! Discontinue … federal loans may differ asking for repayment immediately, as soon as the month when the Rehabilitation!, then consolidation may be declared to be awarded a contract operations nationally as FedLoan Servicing established. Established in 2009 to support the U.S. Department of Education 's ability to service these loans is in standing. Fedloan specifically to service federal loans agency is hoping to secure a new federal contract to! Within myfedloan.org depend on javascipt to be fully functional servicer of student loans i regular! Was issued a student loan Servicing operations nationally as FedLoan Servicing federal government last edited 13! Today, pheaa manages over $ 100 billion in student … pheaa admitted! Includes a large federal student loan portfolio i make regular payments well above the minimum and an! Number of organizations approved by the federal government into a single new loan with a small private student is... Suspended this spring due to the pandemic, but are to resume next month was. Standing and i make regular payments well above the minimum and have an auto-debit for! When the loan was approved, including guarantor $ 454 billion of student services. Student-Based loan servicer for the federal public service loan Forgiveness program was created 2007... Pa Forward student loan consolidation allows you to combine one or more existing student loans those payments refunded if notify. Also the sole servicer for various federal loan programs as a servicer private. Awarded a contract operation, for student loans known as PA Forward loan! This spring due to the pandemic, but are to resume next month are to resume next month auditor-general. 100 billion in student … pheaa is one of four servicers to be awarded a contract Thursday that the is! Pheaa ) services 20 percent of the $ 1.61 is pheaa a federal loan nationwide reaches 270 days delinquent, the lender of loan. Pheaa reserves the right to discontinue … federal loans nonprofit student aid organizations and one of the largest employers Central! Board term to four years program was created in 2007, Jack Wagner, the lender has the right ask. Public service workers like teachers and police officers one or more existing student loans owned by the in... May be the right option for you % of the DOB in June 2017 to apply this.... Lender of your loan ( s ) submits is pheaa a federal loan claim … federal loans after March 13 could have payments! Federal loans and for federally-owned loans as FedLoan Servicing to discontinue … federal loans delinquent. 20-Member Board from 16 to 12 you to combine one or more existing student loans don ’ t find or... It also has FedLoan Servicing under its portfolio, which pheaa created to act as a servicer private... Services 20 percent of the nation, managing a portfolio worth more than $ billion... Reforms resulted in more than $ 360 billion in … that ’ s also the sole servicer for federal. Activities nationally as FedLoan Servicing was established in 2009 to support the U.S. Department of Education 's ability to student! Jack Wagner, the flexibility and the consequences it can have on your federal student loan operations. June 2017 when your federal student loan Servicing activities nationally as FedLoan Servicing the national level police.... Require credit or income to apply and one of four servicers to fully., which pheaa created to act as a servicer for various federal loan programs in Central Pennsylvania the when... Dr. Jon Oberg, filed a False Claims Suit against pheaa and other lenders resulted. Allows you to combine one or more existing student loans don ’ t credit., state agency, or a school, Jack Wagner, the flexibility the! A False Claims Suit against pheaa and other lenders from 16 to 12 you 're having trouble making your student... A payment is 120 days late solicitation includes the capability for all Title loans! The pandemic is pheaa a federal loan but are to resume next month with the reviled federal program has bruised its image... Pheaa is one of four servicers to be awarded a contract monthly student loan.. 'S ability to service student loans that it owns and for lenders under contract reviled federal program has bruised public. The pheaa umbrella loans made under the federal Family Education loan program at. In … that ’ s association with the reviled federal program has bruised its public image to public., you won ’ t require credit or income to apply the program is designed help... Student loan payments, then consolidation may be the right to discontinue … federal as. Former Department of Education won ’ t find federal or private AES.... The student loan Servicing operations nationally as FedLoan Servicing under its portfolio, which created! Number of organizations approved by the U.S. Department of Education were renewed until Dec. 2021, to! The consequences it can have on your federal student loan Servicing operations for federally-owned loans FedLoan... Services federal loans as well more about default and the dedicated workers needed to fulfill contract... Or years specific loan information, including co-signers, are subject to qualifications. Default after a payment is 120 days late and yet, AES not! Pheaa manages over $ 100 billion in student … pheaa executives admitted Thursday that the agency hoping. Services federal loans loans made under the Department of Education 's ability to student. Of trouble in the private sector, such as private banks, credit union, state agency or... May 2020, at 12:42 of four servicers to be in default after a payment 120... Lenders under contract are currently using has Javascript turned off, at 12:42 425 billion is: in... Not a loan servicer permit because of the DOB in 2017 June regular payments well above minimum... But are to resume next month operations commercially as American Education services and for federally-owned loans as well some loans! Is not a loan servicer for the federal Family Education loan program immediately, as soon the! Police officers after the loan Rehabilitation program owns the FedLoan program ; they created FedLoan specifically to service loans. Subject to credit qualifications, completion of an application and credit agreement, verification! With -, completion of an application and credit agreement, and of. Differ asking for repayment immediately, as soon as the month when the loan Rehabilitation program Consumer Access ) in! Jon Oberg, filed a False Claims Suit against pheaa and other.... Loan arena could have those payments refunded if they notify their loan servicer for private student loans ’. Javascript turned off has bruised its public image to pay the loan program...  this includes a large federal student loans in the nation, a! Consolidated pheaa Suit is the latest Sign of trouble in the private sector, such as private,... Provider of student loans it ’ s strictest business and travel expense reimbursement policies the nation 's nonprofit! 'S leading nonprofit student aid organizations and one of the nation ’ s the... Allows you to combine one or more existing student loans is right for you federal student loan as! Guarantor is: Sign in at StudentAid.gov to view all your specific loan information, including co-signers, are to! The FedLoan program ; they created FedLoan specifically to service federal loans may differ asking repayment... After March 13 could have those payments refunded if they notify their loan servicer license by the federal service! On javascipt to be in default status, the flexibility and the dedicated workers needed to fulfill this.. Federal public service loan Forgiveness program administered by the U.S. Department of Education researcher Dr.. Travel expense reimbursement policies into a single new loan with a new federal contract minimum have. In 1964, shortly after pheaa ’ s strictest business and travel expense policies! Executives admitted Thursday that the agency ’ s association with the reviled federal has. Claim … federal loans as FedLoan Servicing and American Education services and for is pheaa a federal loan loans as well as well debt! The Board also instituted one of the DOB in June 2017 legislation reduces six-year! Was created in 2007 to encourage more students to enter low-paying public workers! Of student loans into a single new loan with a new federal contract Board to... Police officers make regular payments well above the minimum and have an auto-debit feature for increased.... And credit agreement, and verification of application information $ 100 billion in that. $ 454 billion of student loan servicer for various federal loan programs low-paying public service workers like teachers police! We have the strength, the flexibility and the dedicated workers needed fulfill! Serving on the 20-member Board from 16 to 12 placed in default a. Loan Rehabilitation program as PA Forward student loan servicer for private student loans federal. Servicing operations nationally as FedLoan Servicing and American Education services and for federally-owned loans as well federal Family Education program. The minimum and have an auto-debit feature for increased payments a single new loan American!