Some student-loan borrowers mistakenly received past-due notices. Correction emails are coming.
Student-loan borrowers reported notices from MOHELA informing them that they're delinquent on their payments. That wasn't the case.
Student-loan borrowers have been mistakenly receiving past-due notices from their servicer, MOHELA. The Education Department informed Business Insider that the issue has been resolved and affected borrowers will be notified by email. This error has come to light as the department implements President Trump's student-loan repayment overhaul, which began on July 1.
The overhaul introduces new repayment plans and transfers millions of borrowers from the Biden-era SAVE plan. Alongside higher monthly payments due to these changes, borrowers have encountered administrative errors in their accounts and challenges in obtaining assistance from their servicers. For instance, 6,000 borrowers were recently notified to reapply for an income-driven repayment plan after receiving incorrect payment amounts in June.
These errors have made it difficult for some borrowers to budget due to the lack of accurate information regarding their student-loan payments. The Government Accountability Office's March report revealed that the Federal Student Aid ceased assessing servicers' billing accuracy due to staffing cuts within the Education Department.
The department spokesperson emphasized their commitment to ensuring student loan borrowers receive top-notch customer service.
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