A month into the restart of federal student loan payments, the U.S. Department of Education is punishing one of the nation’s largest student loan servicers for delayed billing notices.
The department announced on Monday it would be withholding $7.2 million in payment to the Missouri Higher Education Loan Authority (MOHELA), from the month of October for failing to meet its “basic obligation” by not sending billing statements on time to 2.5 million borrowers. The department had promised that borrowers will receive their monthly payment amount at least 30 days before the first payment is due.
