Student Loan Servicer Accused of Violating Collection Injunction

Pennsylvania Higher Education Assistance Agency should be sanctioned for defying a bankruptcy court order prohibiting the company from collecting on thousands of private student loans purportedly discharged through bankruptcy, a proposed class of borrowers said.

Plaintiff Tashanna B. Golden, who leads a putative class of consumers claiming they’ve been billed for student loans that were discharged in bankruptcy, urged the US Bankruptcy Court for the Eastern District of New York on Tuesday to punish and fine the student loan servicer $10,000 per day for willfully violating a nationwide injunction issued in early May.

The injunction order, which went into effect ...