- Elizabeth Warren and John F. Kennedy said the CEO of Student Loan Services may have perjured in April.
- They said PHEAA CEO James Styles may have lied about running a loan forgiveness program.
- Legislators are holding another hearing to give Styles an opportunity to explain his testimony.
As Chair of the Senate Economic Policy Subcommittee of Elizabeth Warren in April invited executives of the largest student loan companies to testify about the impact of student debt on borrowers.
She and Republican-rated subcommittee John F. Kennedy say one of them may have perjured.
On Wednesday, Warren and Kennedy sent a letter to Pennsylvania Higher Education Aid Agency (PHEAA) CEO James Styles regarding “what appears to be false and misleading” from his testimony at the hearing. PHEAA operates the Public Student Loan Forgiveness (PSLF) program, which forgives student loans to government employees after 120 monthly qualifying payments.
Citing data provided by the Department of Education, the senators wrote in their letter that Styles incorrectly stated that PHEAA was not punished for mismanaging the PSLF, which they said is a “serious matter.”
“Our hearing was held in part to understand the role of the student loan servicers and the extent to which they are responsible for the countless failures of the student loan program,” the senators wrote. “But it looks like you were unable to provide accurate information about your company, which undermines the Subcommittee’s fact-finding role and potentially misleads committee members and the public.”
While testifying, Warren first asked Styles if the automated PHEAA system was mistakenly disqualifying payments, to which Styles replied, “Excuse me, Senator. I don’t believe it’s right. ”
Warren then asked if the PHEAA Department of Education had ever punished mismanagement, to which Styles replied no.
But responses from the Ministry of Education suggest otherwise. Warren and Kennedy cited nine reviews from 2016 that identified problems with PSLF implementation by service personnel, resulting in four corrective action plans and two fines in excess of $ 100,000 each.
“It is unclear how and why you provided information that appears to be inaccurate: while it is inexplicable that you were unaware of this series of DOE findings and the penalties affecting your company, it is equally unclear that you would criminalize yourself for ‘knowingly “And” deliberately “giving false information to Congress,” wrote Warren and Kennedy.
President Joe Biden advocated reforming the PSLF, but Insider reported earlier this month that 98% of applicants According to the Ministry of Education, they have continued to be denied the program since Biden took office.
Biden regulatory agenda also includes PSLF review and “plans to study these rules for improvement,” but no further details were provided on what the improvements would look like.
Legislators will hold an additional hearing to give Styles an opportunity to explain inaccuracies in his testimony.
PHEAA did not immediately respond to an insider’s request for comment.