{"id":596035,"date":"2023-10-30T18:39:03","date_gmt":"2023-10-30T15:39:03","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/education-department-withholding-payment-to-student-loan-servicer-after-billing-statement-errors\/"},"modified":"2023-10-30T18:39:03","modified_gmt":"2023-10-30T15:39:03","slug":"education-department-withholding-payment-to-student-loan-servicer-after-billing-statement-errors","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/education-department-withholding-payment-to-student-loan-servicer-after-billing-statement-errors\/","title":{"rendered":"#Education Department withholding payment to student loan servicer after billing statement errors"},"content":{"rendered":"<p><img decoding=\"async\" src=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2022\/09\/CardonaMiguel-08242022.jpg?w=900\" \/><\/p>\n<div>\n<p>The Department of Education announced Monday that it is withholding millions of dollars in payment to the student loan servicer Missouri Higher Education Loan Authority (MOHELA) over billing statement errors it made.\u00a0<\/p>\n<p>The department said MOHELA \u201cfailed to meet its basic obligation\u201d of getting the statements out in a reasonable timeframe, resulting in 2.5 million borrowers getting late statements. Some of the borrowers only got their bill days before their payment was due.\u00a0<\/p>\n<aside class=\"ad-unit ad-unit--mr1_ab\"><\/aside>\n<p>As a result, more than 800,000 borrowers got put into delinquency status under MOHELA.<\/p>\n<p>The department is withholding $7.2 million in its October payment to MOHELA due to the error and told the student loan servicer to put all borrowers affected by this issue in forbearance until it is resolved. Any borrower on an income-driven repayment plan won\u2019t have the months counted against them.<\/p>\n<p>\u201cThe Biden-Harris Administration is looking out for borrowers at every step throughout their return to repayment.\u202f Our\u202foversight efforts have uncovered errors from loan servicers that will not be tolerated. We took im<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>te actions to protect borrowers from the fallout of this error and hold the responsible servicers accountable, including by withholding $7.2 million in payment from one servicer,\u201d Education Secretary Miguel Cardona said.\u00a0<\/p>\n<p>\u201cThe actions we\u2019ve taken send a strong message to all student loan servicers that we will not allow borrowers to suffer the consequences of gross servicing failures. We are committed to fixing our country\u2019s broken student loan system, and that includes strengthening oversight and accountability and taking every step possible to improve outcomes for borrowers,\u201d he added.<\/p>\n<p>Additionally, the department found \u201ca small number of borrowers\u201d received billing statements with incorrect payment amounts, and people on the Borrower Defense program were incorrectly put back on repayments. Those borrowers have also been placed on forbearance until the issue is corrected.\n<\/p><\/div>\n<p>Copyright 2023 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.<\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/thehill.com\/homenews\/education\/4283350-education-department-payment-student-loan-servicer-billing-errors\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Department of Education announced Monday that it is withholding millions of dollars in payment to the student loan servicer Missouri Higher Education Loan Authority (MOHELA) over billing statement errors it made.\u00a0 The department said MOHELA \u201cfailed to meet its basic obligation\u201d of getting the statements out in a reasonable timeframe, resulting in 2.5 million&#8230;<\/p>\n","protected":false},"author":1,"featured_media":596036,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2022\/09\/CardonaMiguel-08242022.jpg?w=1280","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[134343,10574,134661,134420,139403,146689,70289,134345,80241,70588],"class_list":["post-596035","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-campaign","tag-education","tag-energy-environment","tag-equilibrium-sustainability","tag-miguel-cardona","tag-mohela","tag-senate","tag-state-watch","tag-student-loans","tag-video"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/596035","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=596035"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/596035\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/596036"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=596035"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=596035"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=596035"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}