The Consumer Finance Protection Bureau (CFPB) has taken legal action against the National Collegiate Student Loan Trusts and the Pennsylvania Higher Education Assistance Agency for allegedly ignoring student borrowers' requests for payment relief and misleading them about their options. The complaint, filed in Pennsylvania, accuses these entities of violating consumer protection laws by their deceptive practices. If the court approves the proposed settlements, the defendants might pay up to $5 million in penalties, with nearly $3 million directed towards compensating affected borrowers. These trusts and their servicer have been pivotal in managing private student loans, which do not qualify for federal forgiveness programs, making this case significant for private loan borrowers seeking relief.
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