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These ‘zombie’ student-loan organizations still have power over borrowers’ lives — and their bank accounts - MarketWatch

Jul 25, 2024, 9:46 AM EDT1 sourcesAI-analyzed

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Cassie Gibson lost savings to Iowa Student Loan Liquidity Corporation's aggressive tactics. ISLLC's collection methods are controversial and result in lawsuits from borrowers. MOHELA's student loan servicing role has grown significantly since 2010. Consumer advocates fear outdated student loan organizations impact modern policies. Federal courts have blocked Biden's repayment plans citing potential damages to MOHELA.

  • Cassie Gibson lost savings to Iowa Student Loan Liquidity Corporation's aggressive tactics.
  • ISLLC's collection methods are controversial and result in lawsuits from borrowers.
  • MOHELA's student loan servicing role has grown significantly since 2010.
  • Consumer advocates fear outdated student loan organizations impact modern policies.
  • Federal courts have blocked Biden's repayment plans citing potential damages to MOHELA.

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