Teachers sue student loan servicer for converting their grants to loans
To help teachers still disputing the conversion, Troy Doucet, the attorney representing the two educators, is seeking class-action status. Doucet claims PHEAA is trying to turn a profit on the backs of teachers because servicing loans for the government is more lucrative than servicing its grants.
According to PHEAA’s latest contract with the federal government, the company is paid $1.05 per TEACH grant recipient and $2.85 for each student loan borrower repaying their debt. The company earns less for borrowers in deferment or forbearance…
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