Some student-loan borrowers mistakenly received past-due notices. Correction emails are coming.
The U.S. Education Department is correcting an error that caused some student-loan borrowers to receive false past-due notices. This incident occurs amidst a broader overhaul of repayment plans under the current administration.
Why it matters
Administrative errors in student loan servicing create significant financial anxiety and confusion for millions of borrowers navigating complex policy changes.
Student-loan borrowers mistakenly received notices from their servicer that their accounts were past due. hxdbzxy/Getty Images Some student-loan borrowers mistakenly received notices that their accounts were past due. The Education Department said that affected borrowers will receive emails notifying them of the error. It comes as the department is carrying out Trump's sweeping repayment overhaul. 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."
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in