The first month of repayments since the end of a three-year pandemic pause on federal student loans has been filled with mishaps, including incorrect billing amounts and late notices for bills coming due, according to government officials.
Among the issues: 830,000 people missed their first payment since the pause was lifted after a loan servicer failed to send out timely notices to 2.5 million borrowers, the U.S. Department of Education said on Monday.
Some people received their bills just seven days before payment was due, despite the Education Department requiring at least 21 days’ notice. MOHELA, one of the nation’s largest student loan servicers, was responsible for the delayed billing notices and the Department of Education withheld $7.3 million in revenue to MOHELA as a consequence, the department said. (MOHELA did not respond to a request for comment.)
My bill came just a few days before it was due, and it was supposed to be 10% of my discretionary income because of the new income-based plan, but it ended up being a bill for 100% of my income. It’s a strangely calibrated mistake, so that if it were correct I would be signing over my entire paycheck every month, without leaving a single penny for food, rent, you know: life.
The day after I got the bill, I got a letter saying they put my loans in forbearance. Did they realize the mistake? Are they fixing it? I have no idea, because there was no explanation for the forbearance, and I can’t get the servicer on the phone.
Some truly flabbergasting bullshit.