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Thursday, March 28, 2024

Student loan assistance agency accused of misleading borrowers

Contract 06

HARRISBURG, Pa. (Legal Newsline) — A Texas resident has filed a class-action lawsuit against one of the nation's biggest servicers of student loans, citing alleged breach of contract.

Danielle Salvatore filed a complaint on behalf of all others similarly situated on March 1 in the U.S. District Court for the Middle District of Pennsylvania against Pennsylvania Higher Education Assistance Agency, a public agency, alleging that the agency failed to disclose or intentionally describe its Revised Pay-As-You-Earn option, or REPAYE, to borrowers.

According to the complaint, the plaintiff alleges that she sustained damages from being misled into participating in a payment scheme for her student loan. The plaintiff holds Pennsylvania Higher Education Assistance Agency responsible because the defendant allegedly failed to provide all the important details of the REPAYE program, including informing the borrower about extra fees and interest.

The plaintiff requests a trial by jury and seeks permanent injunction against the defendant, an order to the defendant to provide student loan borrowers with complete information about REPAYE, monetary damages, compensatory damages, exemplary damages, more than $5 million in punitive damages, interest, court costs and any further relief the court grants. She is represented by Marion Munley of Munley Law P.C. in Scranton, Penn.

U.S. District Court for the Middle District of Pennsylvania Case number 1:17-cv-00385-YK

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