In a U.S. Department of Education memo, senior officials detail errors made by servicers as tens of millions of borrowers resumed their payments in October.
In a U.S. Department of Education memo, senior officials detail the errors made by its servicers as tens of millions of borrowers resumed their payments in October.
"The restart of repayment has caused pure chaos for nearly 3 million borrowers," said higher education expert Mark Kantrowitz, who reviewed the memo at CNBC's request.under the Biden Administration's new Saving on a Valuable Education, or SAVE, plan. That plan, which was touted as the "," was meant to ease the transition back to payments for borrowers. Federal student loan payments had been on pause for over three years until they resumed last month.
More than 21,000 people were billed "very high" and "potentially incorrect" amounts, according to the memo. One borrower was told they owed $108,895.19 for the month. The memo also details the problems that resulted from Mohela's failure to send timely billing statements to 2.5 million borrowers this fall, including some. The department announced last month that it will withhold $7.2 million in payments to Mohela in October for those errors.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Education Department punishes student loan servicer for error that made 800,000 borrowers delinquentThe U.S. Department of Education said it penalized MOHELA after a billing error led over 800,000 borrowers to miss their payments in October.
Read more »
Education Department punishes student loan servicer for billing mistakesThe department is withholding payment from loan servicer MOHELA as 2.5 million borrowers didn't receive timely billing statements.
Read more »
Virginia Foxx subpoenas Education Department over student loan borrower's defense programJeremiah Poff is an education and culture reporter for the Washington Examiner. A Virginia native, he previously worked for the Cardinal Newman Society, the Department of Education, and the College Fix. He graduated from Franciscan University of Steubenville in 2019 with a degree in journalism and a minor in human life studies.
Read more »
U.S. Orders Grand Canyon University to Pay Record $37.7 Million FineEducation Department accuses school of misleading some students about tuition costs
Read more »
After community pushback, Seattle Police Department implementing ruse policyThe Seattle Catrinas Festival is set to take place every day between Nov. 2 and Nov. 5 at The Town Hall in Seattle on Eighth Avenue.
Read more »