FedLoan Class Action for Illegally Converting Teach Grants into Loans

If you have had a grant illegally converted, please fill out our FedLoan questionnaire here.

Doucet & Associates Co., L.P.A. files class action lawsuit against Fedloan

Doucet & Associates Co., L.P.A. just filed a class action lawsuit against Fedloan for refusing to honor grants given to teachers who agree to work in low income-schools after graduating college. Fedloans is now converting TEACH grants into loans and asking teachers to pay back thousands of dollars in loans with accrued interest. If you received a TEACH grant that has been changed into a loan, contact the lawyers at Doucet & Associates Co., L.P.A. at (614)944-5219 for more information about the class action lawsuit against Fedloan.

Fedloan, also known as the Pennsylvania Higher Education Assistance Agency (PHEAA), is the federal loan servicer for the Teacher Education Assistance for College and Higher Educations (TEACH) grant program.  The TEACH program promotes newly licensed teachers to work in high-need subject areas at low-income schools by giving the teachers grants while they are in college. If a grant recipients fail to fulfill the teaching requirements, in that situation only would Fedloan be allowed to convert the grant into an interest-bearing loan.

Our clients sought out legal assistance from the lawyers at Doucet & Associates Co., L.P.A. because they believe their TEACH grants were unfairly converted into loans by Fedloan, even though they were actively fulfilling their teaching requirements. Teachers also agree to provide the Fedloan with certification and proof of their employment while finishing the program. As students, the teachers are eligible to receive up $4,000 a year under the TEACH grant for educational purposes if they agree to work in a high-need subject areas at low-income schools for at least four school years within eight years of completing college.  Teachers sign a contract agreeing to pay back the grant as a loan with any accrued interest if they do not fulfill the teaching requirements.

If you have had a grant illegally converted, please fill out our FedLoan questionnaire here.

One of our clients received $7,000 through the TEACH grant. After finishing her studies, she went on to teach middle school special education at a designated low-income school in Ohio. Halfway into completing her teaching requirements, Fedloans converted her grant into an interest-bearing loan for allegedly failing to submit proof of her employment. Our client, who was on maternity leave when she received her proof of employment paperwork, accidently forgot to get one signature for the paperwork. Fedloans changed her grant into a loan and told her that she could resubmit new paperwork to fix the error. Fedloans failed to change her loan back into a grant after she resubmitted her proof of employment.

Another client of ours also left out a signature on their proof of employment form, and their school principal forgot to fill out the start and end dates for the academic school year. As soon as our client was notified about the error, he took actions to fix his errors. Despite Fedloans being notified with the correct information, our clients’ grant was still converted into an interest-bearing loan.

Fedloan’s actions of converting grants into interest-bearing loans is unacceptable. If you are a recipient of the TEACH grant and had your grant wrongfully converted to a loan by Fedloan, you may be a valuable class member in our class action lawsuit. Our class action lawsuit is representing all TEACH grant recipients affiliated with Fedloan in the United States who had their grants converted into interest-bearing loans after July 2013 and who successfully submitted documents verifying proof of employment in targeted teaching areas. You can contact Doucet & Associates Co., L.P.A. today at (614)944-5219 to join our class action lawsuit against Fedloan or send our lawyers a message online by clicking here. Please check back soon for more information regarding the class action lawsuit against Fedloan, also known as PHEAA.

If you have had a grant illegally converted, please fill out our FedLoan questionnaire here.

To read the entire lawsuit, click here.

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