Education Department punishes student loan servicer for billing mistakes
The department is withholding payment from its largest loan servicer as 2.5 million borrowers didn't receive timely billing statements.
The U.S. Department of Education has taken the unusual step of punishing the largest federal student loan servicer for failing to send on-time billing statements to 2.5 million borrowers.
The department said on Monday that it would withhold $7.2 million in payment owed to the Higher Education Loan Authority of the State of Missouri, better known as MOHELA, for the month of October. It announced that, of those 2.5 million borrowers, more than 800,000 failed to make an on-time loan payment in October, the first month that payments are due since the pandemic pause began in March 2020.
"The actions we've taken send a strong message to all student loan servicers that
