Pennsylvania Higher Education Assistance Agency, and National Collegiate Student Loan Trusts
On May 6, 2024, the Bureau filed a complaint and two proposed stipulated final judgments to resolve the Bureau’s claims against the National Collegiate Student Loan Trusts (the Trusts) and the Pennsylvania Higher Education Assistance Agency d/b/a American Education Services (PHEAA), respectively. PHEAA is a student loan servicer and has been the primary servicer for loans held by the Trusts since at least 2006. The Bureau alleged that the Trusts and PHEAA violated the Consumer Financial Protection Act of 2010’s prohibition on unfair and deceptive acts and practices in connection with their failures to properly process and respond to student loan servicing requests from student borrowers, including requests for relief as a result of the COVID-19 pandemic.
The court entered the stipulated final judgments on October 1, 2024, overruling an objection by a third party, Pacific Investment Management Company, LLC (PIMCO), to entry of the settlement as to the Trusts. PIMCO appealed that order. PHEAA and the Trusts paid civil money penalties in compliance with the judgments, and on January 2, 2025, the district court granted PHEAA’s motion to stay the redress provisions of the Trusts’ judgment, pending the duration of PIMCO’s appeal.
On August 12, 2025, the Bureau, PHEAA, the Trusts, and PIMCO jointly moved the Third Circuit for a partial remand of the case to permit the parties to jointly move the district court to partially vacate or modify the stipulated judgments. On December 8, 2025, the district court entered a modified stipulated final judgment and order, which narrowed the prospective and injunctive provisions of the stipulated judgments, retaining only the civil money penalties and certain redress obligations related to borrower requests for Servicemembers Civil Relief Act protections. On January 6, 2026, the parties filed a joint stipulation of dismissal in the Third Circuit, and the court dismissed the appeal the next day.
Related documents
Stipulated Final Judgment and Order as to the National Collegiate Student Loan Trusts (This version has been modified from the version that was entered by the court in order to optimize the reading experience for individuals with disabilities. No text has been changed.)
Stipulated Final Judgment and Order as to Pennsylvania Higher Education Assistance Agency (This version has been modified from the version that was entered by the court in order to optimize the reading experience for individuals with disabilities. No text has been changed.)
Modified Stipulated Final Judgment and Order
Joint Stipulation of Dismissal of PIMCO Appeal