"Biden Administration Sanctions Loan Servicers Amidst Widespread Billing Errors Affecting Students and Economy"
TL;DR
The Biden administration is penalizing student loan servicers Aidvantage, EdFinancial, and Nelnet by withholding over $2 million in payments due to their failure to send timely billing statements after the end of a pandemic payment freeze. The servicers' errors affected over 750,000 borrowers, and this follows a previous $7.2 million withholding from MOHELA for similar issues. Borrowers affected by late statements will be placed in administrative forbearance, and the Education Department is working on a new proposal for targeted student loan cancellation after a previous plan was rejected by the Supreme Court.
Topics:top-newseducationpolitics##bidenadministration#educationdepartment#educationpolitics#loanservicers#paymentfreeze#studentloans
- The Biden administration cuts $2M for student loan servicers after a bungled return to repayment Yahoo Finance
- Federal agency: Student loan company errors could 'pose serious risks' to borrowers, the economy CNBC
- Education Department: 758K more student borrowers hit with billing errors POLITICO
- Biden administration punishes more student loan servicers for delays The Washington Post
- 758,000 more student-loan borrowers didn't receive on-time billing statements Business Insider
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