The Massachusetts attorney general is telling Pennsylvania’s student loan agency it’s under investigation for “consumer protection” issues related to federally-backed student loans.
The Morning Call newspaper of Allentown reported Thursday the board chairman of the Pennsylvania Higher Education Assistance Agency confirmed that Massachusetts Attorney General Maura Healey disclosed the investigation in a letter last week.
The newspaper says Healey may demand refunds.
The student loan agency operates two corporate units that together manage and collect more than $392 billion in student loans. It also is distributing about $400 million in grants this year.
The agency employs about 3,600 people and is overseen by a 20-member board that includes 16 state lawmakers.