Over 1.3 Million Borrowers Affected by Student Loan Billing and Notice Errors, U.S. Education Department Penalizes MOHELA

Student loan servicer MOHELA sanctioned for failure to send timely billing statements to 2.5 million borrowers, resulting in over 830,000 late payments. Further errors across various servicers have incorrectly billed or wrongfully penalized borrowers, exposing significant issues with the student loan system during the return to repayments.