ALBANY, N.Y. (NEWS10) – The Pennsylvania Higher Education Assistance Agency (PHEAA) will automatically review more than 10,000 New York borrowers’ accounts. PHEAA is required to audit thousands of accounts to identify errors that may have caused borrowers to miss out on benefits according to a settlement agreement with the Office of the Attorney General (OAG).

According to the settlement PHEAA allegedly mismanage New York borrowers’ federal loans such as income-driven repayment plans or debt forgiveness for eligible under the Public Service Loan Forgiveness (PSLF) program. PHEAA, which operates as FedLoan Servicing and American Education Services, will correct errors identified in borrowers’ accounts and provide some with monetary relief as restitution.

OAG said this agreement resolves an earlier lawsuit brought against PHEAA over allegations of mismanaging the loan forgiveness program by inaccurately counting loan payments, improperly denying applications, and not processing applications in a timely manner. Officials said more than 300,000 borrowers are eligible to have their accounts reviewed for free and may request an audit.

Under this agreement, PHEAA will be reviewing accounts for various errors, including incorrect information provided about PSLF or income-driven monthly payments that borrowers were charged, and more. If you are a PHEAA borrower you can request a review by going to their online account at

Additionally, for PHEAA borrowers who do not receive a notice but believe you are entitled to a review of your account, they should contact PHEAA by calling 1-800-699-2908 (for FedLoan borrowers) and 1-800-233-0557 (for AES borrowers).