Student-loan borrowers got incorrect notices from a major student-loan company. Lawmakers want answers.
A group of Democratic lawmakers opened an investigation into student-loan company MOHELA over erroneous past-due notices that some borrowers received.
Sen. Elizabeth Warren, along with lawmakers Jeff Merkley and Ed Markey, are investigating student-loan servicer MOHELA after the company sent erroneous past-due notices to borrowers. These notices falsely indicated that borrowers were approaching default, leading to some borrowers experiencing credit score drops and financial distress.
MOHELA has faced previous investigations, including in 2023 when the Education Department withheld $7.2 million in pay for failing to send on-time billing statements to 2.5 million borrowers. Now, the Democratic lawmakers are seeking information from MOHELA regarding the extent of the error, its cause, and how long it took the company to notify borrowers of the mistake.
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