Tell the Department of Education to Fire Mohela

We, the undersigned, are deeply concerned about recent developments that threaten to block critical student debt relief efforts in the United States. Just shy of the implementation of President Biden’s student debt cancellation plan, we have learned that MOHELA, a student loan servicer funded by borrowers’, allies’, students’, and advocates’ taxpayer dollars, is working to obstruct debt relief that would benefit millions of borrowers, just as they previously attempted to block the first rounds of student debt relief. 

MOHELA’s primary responsibility is to help millions of Americans manage their student debt, yet they are now actively working behind the scenes to prevent relief from reaching those in need. This is an unacceptable misuse of public resources and an outright betrayal of the millions of borrowers who are forced to blindly trust and rely on their services. Enough is enough.

We ask the Department of Education: 

Immediately cease all contracts with MOHELA. The most recent attempt by several Attorneys General and MOHELA to block the President’s latest plan to cancel student debt is a clear conflict of interest that only results in more harm to borrowers. 

Prioritize the needs of borrowers. Our government and the entities funded by taxpayer dollars should be working to relieve, not exacerbate, the financial burdens faced by everyday Americans. MOHELA has made it clear that they cannot separate the well-being of their constituents from the personal benefits of stopping student debt cancellation.

Support widespread student debt cancellation. The President’s proposed Plan B for student debt cancellation is a straightforward and effective proposal that would provide much-needed relief to millions of borrowers, stimulate the economy, and create a fairer and more equitable society.