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FedLoan Got Sued For Failing on Public Service Loan Foregiveness Now Motion to Compel

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - The Source

SDNY COURTHOUSE, Feb 4 – New York State has sued the Federal Education Department's sole-source contractor FedLoan Servicing (or PHEAA, the Pennsylvania Higher Education Assistance Agency or American Education Services) for "failing miserably in its administration of the Public Service Loan Forgiveness."

   Cited as a basis for dismissing complaint, & for limited discovery was "Yearsley" immunity.  Inner City Press covered it.

   U.S. District Court for the Southern District of New York Judge Ramos ruled he will allow full discovery, not just Yearsley discovery. He told NYS and FedLoan to meet and confer and submit a discovery schedule.

On March 4, Judge Ramos held another proceeding and Inner City Press again covered it. Now NYS AG wants to file a motion to compel, arguing that "even if the state of limitations.. were three years, NYAG would still be entitled to documents pre-dating the three-year period to the extent such documents are relevant to NYAG's actionable claims." The motion to compel is due March 25.

 Inner City Press will continue to cover this case. It is People of the State of New York v. PHEEA, 19-cv-9155 (Ramos). 

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