That past-due notice on your student-loan payments might be a mistake.
Over the past few days, some borrowers whose accounts are managed by student-loan servicer MOHELA received notices that their loans were past due and at risk of default. In reality, their accounts are not at risk, and the notices were sent in error.
An Education Department spokesperson confirmed to Business Insider that the department is aware of an issue affecting “a small number of borrowers at one servicer.”
“The issue has been fixed, and impacted borrowers will be notified by email of the error,” the spokesperson said.
This comes as the department is carrying out President Donald Trump’s student-loan repayment overhaul, which took effect July 1. It includes new repayment plans and the transition of millions of borrowers off the Biden-era SAVE plan. In addition to higher monthly payments resulting from the changes, borrowers have reported administrative errors in their accounts and difficulty obtaining assistance from their servicers.
For example, 6,000 borrowers recently received notices to reapply for an income-driven repayment plan after receiving the incorrect payment amount in June. Affected borrowers said these errors make it difficult to budget because they are not receiving accurate information about their student-loan payments.
A March report from the Government Accountability Office found that the Federal Student Aid stopped assessing servicers’ billing accuracy due to staffing cuts at the Education Department. A spokesperson said that the department “remains focused on ensuring student loan borrowers receive the highest-quality customer service.”
Have a story to share about student loans? Contact this reporter at [email protected].
