A federal judge in Virginia declined to extend sovereign immunity protection to student loan servicer MOHELA in a credit reporting dispute, finding MOHELA’s reliance on the U.S. Supreme Court’s student-debt cancellation case Biden v. Nebraska did not address whether one of the nation’s largest servicers was entitled to such defense.
Francis Pellegrino brought a lawsuit against Higher Education Loan Authority of the State of Missouri, or MOHELA, and the Pennsylvania Higher Education Assistance Agency, or PHEAA, for allegedly reporting inaccurate information to credit bureaus, Equifax, TransUnion and Experian, that he was delinquent on seven of his loans during a time when the loans were on forbearance or deferred status.
