Student loan borrowers and others will be able to sue a national student loan corporation after a federal appeals court said Wednesday that the corporation’s affiliation with a state government does not shield it from lawsuits.
The U.S. Court of Appeals for the Fourth Circuit ruled that the Pennsylvania Higher Education Assistance Agency, or PHEAA, is not an "arm of the state," and therefore is not immune from lawsuits.
Consumer advocates praised the decision as a win for student loan borrowers because they would be allowed to hold PHEAA accountable for its actions in court.
Read more at Inside Higher Ed: https://www.insidehighered.com/news/2015/10/22/appeals-court-says-borrowers-can-sue-major-student-loan-agency