Biden Administration Penalizes Student Loan Servicers for Late Billing Statements

Over 750,000 borrowers affected as Aidvantage, EdFinancial and Nelnet docked more than $2 million in payments after failing to send timely statements.

The Biden administration has docked more than $2 million in payments to student loan servicers Aidvantage, EdFinancial and Nelnet for failing to send billing statements on time after the end of a coronavirus pandemic payment freeze.
Over 750,000 borrowers did not receive timely statements in the first month of repayment.
The Education Department previously withheld $7.2 million from loan servicer MOHELA for similar reasons.
Borrowers who did not receive statements within the required 21 days before payment will be placed in administrative forbearance while problems are resolved.
The Biden administration is working toward a new proposal for widespread student loan cancellation after the Supreme Court rejected Biden’s first plan last June.