<ul class="summary-list"><li>The <keyword id="12055000" type="UNKNOWN" weightage="60" keywordseo="cfpb" source="Orion">CFPB</keyword> fined student-loan company <keyword id="13507765" type="UNKNOWN" weightage="60" keywordseo="edfinancial" source="Orion">Edfinancial</keyword> over findings the company lied to borrowers.</li><li>The bureau said borrowers with FFEL loans, in particular, were misled about Public Service Loan Forgiveness.</li></ul>A small student-loan company just got charged a hefty fine for accusations of lying to borrowers about loan forgiveness and repayment programs.On Wednesday, the Consumer Financial Protection Bureau (CFPB) <a href="https://files.consumerfinance.gov/f/documents/cfpb_edfinancial-services_consent-order_2022-03.pdf">sanctioned</a> Edfinancial Services for "making deceptive statements to student loan borrowers and misrepresenting their forgiveness and repayment options to them," according to the <a href="https://www.consumerfinance.gov/about-us/newsroom/cfpb-sanctions-edfinancial-for-lying-about-student-loan-cancellation/">press release</a>.Specifically, the bureau said Edfinancial did not provide accurate information to borrowers of the privately held Federal Family Education Loan (FFEL) program about their eligibility for the Public Service Loan Forgiveness (PSLF) program — a program that forgives <keyword id="11896049" type="UNKNOWN" weightage="60" keywordseo="student-debt" source="Orion">student debt</keyword> for public servants after ten years, and recently <a href="https://www.businessinsider.com/public-service-loan-forgiveness-program-major-overhaul-student-debt-biden-2021-10">expanded</a> its eligibility to include FFEL borrowers through a temporary waiver."Edfinancial's failure to tell the full truth to borrowers, so it could pad its bottom line highlights a systemic problem with loan servicing," CFPB Director <keyword id="12217407" type="UNKNOWN" weightage="60" keywordseo="rohit-chopra" source="Orion">Rohit Chopra</keyword> said in a statement. "When student loan companies lie about cancellation and repayment programs for borrowers, they are breaking the law."Edfinancial did not immediately respond to Insider's request for comment.In October, the Education Department <a href="https://www.businessinsider.com/public-service-loan-forgiveness-program-major-overhaul-student-debt-biden-2021-10">announced</a> reforms to PSLF — one of which included a waiver through October 2022 that would allow past payments, including those that might not have qualified for the program, to be counted toward PSLF progress. That included borrowers in the FFEL program, which previously didn't count, but as the CFPB reported on Wednesday, Edfinancial misrepresented those borrowers' eligibility.The bureau found Edfinancial "harmed" borrowers by:<ul><li>Stating that FFEL borrowers could not receive PSLF</li><li>Misrepresenting that FFEL borrowers were making payments toward PSLF before consolidating their loans into Direct loans — a requirement to qualify for the forgiveness program</li><li>Misrepresenting which jobs qualify for PSLF</li><li>And failing to mention PSLF to FFELb borrowers when describing loan forgiveness programs.</li></ul>The CFPB is requiring Edfinancial to reach out to all FFEL borrowers to give them an opportunity to take advantage of the PSLF waiver before it expires, along with paying a $1 million penalty to the bureau's Civil Penalty Fund.While the FFEL program was discontinued in 2010, millions of borrowers have continued making payments on those loans, which are privately-held. Chopra wrote in his statement that "Edfinancial is not a massive servicer, but its deceptive practices can have a massive impact on an individual borrower's financial future," which is why Federal Student Aid head <keyword id="12136821" type="UNKNOWN" weightage="60" keywordseo="richard-cordray" source="Orion">Richard Cordray</keyword> wrote a <a href="https://fsapartners.ed.gov/knowledge-center/library/electronic-announcements/2022-03-30/fsa-letter-ffel-program-participants-responsibilities-borrowers-seeking-benefit-public-service-loan-forgiveness-program">letter</a> to borrowers following CFPB's actions to bring the issues to "immediate attention" of every company that handles FFEL borrowers."We have no reason at all to think that these issues – which dated from at least January 2017 through at least February 2021 – were unique to EdFinancial. To the contrary, they may well reflect the longstanding approach to how <a href="https://www.dfs.ny.gov/system/files/documents/2019/01/ea190104_conduent.pdf" target="_blank" rel="noopener noreferrer">others were handling</a> these <a href="https://files.consumerfinance.gov/f/documents/cfpb_supervisory-highlights_issue-24_2021-06.pdf" target="_blank" rel="noopener noreferrer">same issues</a> during the same period and perhaps even now," Cordray wrote. "<keyword id="12136822" type="UNKNOWN" weightage="60" keywordseo="fsa" source="Orion">FSA</keyword> and CFPB can be expected to pursue further oversight of these issues, and every company should take pains to address them at once, so as to avoid penalties or other consequences," he added.Mike Pierce, executive director of the Student Borrower Protection Center, told Insider that CFPB's actions were "a long time coming," and the words from both Chopra and Cordray might suggest all student-loan companies — not just Edfinancial — will be facing increasing enforcement measures."There's some language that feels a lot broader than just the single enforcement action or two that suggests that the CFPB is watching the whole student loan industry and watching its conduct far beyond just public service loan forgiveness, but really any place where student loan companies are cheating borrowers," Pierce said.

A student-loan company just got hit with a $1 million penalty for 'breaking the law' by lying to borrowers about loan forgiveness, Biden's top consumer watchdog says

<ul class="summary-list"><li>The Education Department said 758,000 student-loan borrowers didn't receive on-time billing notices.</li><li>As a result, Nelnet, Aidvantage, and EdFinancial are having a combined $2 million in pay withheld.</li></ul>Thousands more student-loan borrowers <a target="_blank" href="https://www.businessinsider.com/mohela-student-loan-borrowers-missed-payments-forbearance-debt-education-department-2023-11">failed to get the on-time billing statements</a> they were owed in the fall — and the companies that manage their debt are being punished.On Friday, President Joe Biden's Education Department announced it identified 758,000 additional borrowers that did not receive on-time billing statements in October, <a target="_blank" href="https://www.businessinsider.com/student-loan-repayment-issues-debt-relief-broken-industry-2023-9">the first month bills started to become due</a> after an over three-year pause. This comes after the department in October identified <a target="_blank" href="https://www.businessinsider.com/student-loan-company-mohela-late-statements-borrowers-biden-withholding-pay-2023-10">over 2 million borrowers</a> who experienced the same issue.According to the department, three servicers — Aidvantage, EdFinancial, and Nelnet — were responsible for these errors. As a result, the department is withholding a combined amount of over $2 million in pay from the companies, "amounts based upon the number of borrowers impacted by these errors," the press release said.Specifically, Aidvantage was hit with a $2 million penalty, with $161,000 for Edfinancial and $13,000 for Nelnet."Today's actions make clear that the Biden-Harris Administration will not give student loan servicers a free pass for poor performance and missteps that jeopardize borrowers," Education Secretary Miguel Cardona said in a statement."As millions of Americans return to repayment, the Department of Education will continue to engage in aggressive oversight of student loan servicers and put the interests of borrowers first," he said. "When unacceptable errors are uncovered, servicers should expect to be held accountable and borrowers should count on this administration to hold them harmless." In the meantime, the department said it instructed each of the three servicers to <a target="_blank" href="https://www.businessinsider.com/why-are-my-student-loans-in-forbearance-mohela-borrowers-repayment-2023-11">place impacted borrowers on administrative forbearance</a>, during which they will not be required to make payments and interest will not accrue on their balances.Additionally, the time in forbearance will still count toward forgiveness progress in Public Service Loan Forgiveness and income-driven repayment plans.With this latest announcement, all federal servicers have received penalties for failing to fulfill their contractual obligations. The Education Department withheld over $7 million in October pay from servicer MOHELA after finding that it had <a target="_blank" href="https://www.businessinsider.com/student-loan-company-mohela-late-statements-borrowers-biden-withholding-pay-2023-10">failed to send on-time statements to 2.5 million borrowers.</a>And lack of timely statements is just <a target="_blank" href="https://www.businessinsider.com/student-loan-bills-are-wrong-borrowers-servicers-fixing-errors-education-2023-11">one of the many issues borrowers have experienced</a> since they entered repayment in the fall. The Consumer Financial Protection Bureau released a report on Friday of its oversight of student-loan servicing since payments resumed, and it found borrowers were waiting on hold with customer service for an average of 70 minutes in October, and as a result, nearly 30% of those calls were abandoned.While the department put forth an <a target="_blank" href="https://www.businessinsider.com/student-loan-borrowers-bad-customer-service-education-department-oversight-repayment-2023-11">accountability framework to ensure servicers are meeting their obligations</a> — including withholding their pay if they don't — some servicers have previously told lawmakers that they're doing all they possibly can, given the limited resources they have.Congress failed to boost funding for Federal Student Aid last year, and with Republicans <a target="_blank" href="https://www.businessinsider.com/student-loan-borrowers-repayment-more-hurdles-gop-budget-cut-proposal-2023-7">proposing budget cuts this time around</a>, servicers recently told Democratic lawmakers <a target="_blank" href="https://www.businessinsider.com/student-loan-borrowers-mohela-challenges-return-to-repayment-elizabeth-warren-2023-12">they need to boost funding to properly carry out their duties.</a>"For three years we have very vocally warned that reduced fees and continued extensions of the payment pause meant it would be highly unlikely we would be prepared to manage call volume when repayment finally began," Nelnet said in a <a target="_blank" href="https://www.warren.senate.gov/imo/media/doc/Servicer%20Responses.pdf">letter</a> to lawmakers in December.The department said in its press release that it will continue to monitor servicers' performance to ensure they're meeting their obligations, and if not, it'll take additional action."We will not allow servicers to cause harm to borrowers as they resume making their monthly payments," Federal Student Aid Director Rich Cordray said in a statement. "We are committed to providing a seamless repayment experience for borrowers. We will continue our strong oversight and efforts to hold servicers to their contractual obligations and make sure borrowers are not harmed by these errors."

758,000 more student-loan borrowers didn't receive on-time billing statements in the fall — and they won't have to make payments until the issues are resolved

<ul class="summary-list"><li>A group of Democrats asked student-loan companies for updates on the return to repayment.</li><li>They said the companies' prior responses were inadequate in addressing the issues borrowers have faced.</li></ul>Four federal student-loan companies explained why they're still <a target="_blank" href="https://www.businessinsider.com/student-loan-payments-resume-confusion-borrowers-debt-relief-biden-2023-8">struggling to facilitate the return to repayment</a> for borrowers. A group of Democrats aren't satisfied with their answers.On Wednesday night, Sens. Elizabeth Warren, Richard Blumenthal, Ed Markey, and Chris Van Hollen <a target="_blank" href="https://www.warren.senate.gov/imo/media/doc/ServicersLettersDecember2023.pdf">sent letters</a> first reviewed by Business Insider to the CEOs of the four major servicers: MOHELA, Nelnet, Aidvantage, and EdFinancial.In September, the lawmakers <a target="_blank" href="https://www.businessinsider.com/elizabeth-warren-student-loan-companies-bad-customer-service-borrowers-repayment-2023-9">inquired how the servicers were faring with their customer service abilities</a>, along with how they were communicating with borrowers as they navigated the return to repayment — and after receiving the servicers' responses, obtained by BI, the Democrats want more information to ensure the servicers are acting in borrowers' best interests."In response to numerous reports of long wait times and dropped calls, we requested information about the experiences of borrowers who attempt to contact your company," Democrats wrote in their letter to Nelnet."However, your response lacked critical details and failed to shed light on the difficulties your borrowers face," they continued. "Nelnet's response was deeply concerning as it failed to answer any of our questions, placed blame on others for the challenges borrowers are facing, and refused to acknowledge its own responsibility — despite anticipating a difficult return to repayment."And in their letter to MOHELA, they pushed back on the idea that the servicer <a target="_blank" href="https://www.businessinsider.com/student-loan-borrowers-repayment-more-hurdles-gop-budget-cut-proposal-2023-7">does not have sufficient funding</a> to properly manage the return to repayment, writing that "ED pays the servicers more than one billion dollars a year. And from 2020 to 2023, MOHELA has spent $810,000 on lobbying, which suggests that it has the resources to improve the service it provides to borrowers."The lawmakers requested each servicer provide answers on a number of questions by January 2, 2024, including average wait times for borrowers to speak to customer service, the causes of errors for borrowers who filed complaints, what penalties, if any, the servicer has faced for making mistakes, and their plans for fixing errors identified by the Education Department.Here's what the servicers told the group of lawmakers as to why they're continuing to struggle with the return to repayment.<h2>What student-loan companies think</h2>The four federal servicers delivered their responses to the Democrats' September inquiry in October, and they each provided their own reasoning for the repayment hurdles they were facing.MOHELA's response primarily focused on the lack of Federal Student Aid funding "for servicing during the unprecedented event," which it said "pales in comparison to the enormity of work associated with assisting millions of borrowers in a condensed time frame."Nelnet similarly expressed concerns with a lack of FSA funding, and it also went on to say that despite conducting outreach to borrowers prior to the payment resumption, "we suspect many borrowers had no real sense of urgency because repayment was suspended and many expected their loans to be discharged based on the Administration's statements, leading many borrowers to wait until the last minute."The company also said that minimal resources to update computer systems and increase staffing left it "flatfooted to deal with unanticipated call volume and could not properly prepare to answer borrowers' questions."Both EdFinancial and Maximus pointed to the unprecedented nature of the return to repayment as a reason why customer service wait times are unpredictable: "Every communication that is sent to borrowers or announcement that is made in the media regarding new plans and discharges drives up borrower contacts to their servicers leaving us with no reliable way to predict volumes on a daily basis," EdFinancial wrote. "Higher call volumes and wait times under these conditions should not be considered a surprise development."The Education Department recently announced a <a target="_blank" href="https://www.businessinsider.com/student-loan-borrowers-bad-customer-service-education-department-oversight-repayment-2023-11">new framework for enforcing oversight over servicers</a>, including <a target="_blank" href="https://www.businessinsider.com/student-loan-company-mohela-late-statements-borrowers-biden-withholding-pay-2023-10">withholding their pay</a> should the department find they are not fulfilling their contractual obligations. Each of the servicers said they were working with the department to ensure they're in compliance with their contracts.

Student-loan companies explain why they're not to blame for borrowers' repayment challenges. A group of Democrats said it's still 'deeply concerning.'

<ul class="summary-list"><li>Sen. Elizabeth Warren called on the CEO of student-loan company MOHELA to testify before the Senate in April.</li><li>The hearing is set to examine MOHELA's handling of the return to repayment and PSLF.</li></ul>Massachusetts Sen. <a target="_blank" href="https://www.businessinsider.com/elizabeth-warren-congress-salary-raise-plaything-billionaires-2024-1">Elizabeth Warren</a> has questions for the head of a major student-loan company — and she wants him to answer them in Congress next month.On Monday, Warren sent a <a target="_blank" href="https://www.warren.senate.gov/imo/media/doc/2024.03.18%20Letter%20to%20MOHELA%20CEO%20re%20Subcomittee%20Hearing1.pdf">letter</a> to Scott Giles, the CEO of federal student-loan servicer MOHELA, inviting him to testify before the Senate banking committee on April 10. The hearing, called "MOHELA's Performance as a Student Loan Servicer," is intended to examine how MOHELA has performed since the return to repayment in the fall, along with its handling of the Public Service Loan Forgiveness Program.MOHELA was the first federal servicer to be punished by the Education Department for failing to fulfill its contractual obligations. In October — the same month borrowers began to pay their bills after an over three-year pause — the department <a target="_blank" href="https://www.businessinsider.com/student-loan-company-mohela-late-statements-borrowers-biden-withholding-pay-2023-10">withheld over $7 million in pay</a> from the company for failing to send on-time billing statements to borrowers.Additionally, <a target="_blank" href="https://www.businessinsider.com/student-loan-borrowers-sue-mohela-delay-public-service-debt-forgiveness-2023-12">two student-loan borrowers sued MOHELA</a> in December, accusing the company of delaying their PSLF applications and forcing them to make payments they did not owe."Your company has contributed to student loan borrowers' difficulties by mishandling borrowers' return to repayment following the COVID-19 pandemic-related pause on payments, interest, and collections and by impeding public servants' access to PSLF relief," Warren wrote in the letter."Your testimony will provide you with an opportunity to offer context on MOHELA's role as a student loan servicer at a time of significant transition for the federal student loan program," she added.MOHELA did not immediately respond to a request for comment from Business Insider.Warren, along with <a target="_blank" href="https://www.businessinsider.com/student-loan-borrowers-mohela-bad-information-forbearance-repayment-errors-debt-2023-11">other Democratic lawmakers</a>, has previously scrutinized MOHELA's handling of student-loan borrowers' accounts. Most recently, Warren joined Senate Majority Leader Chuck Schumer and Sen. Bernie Sanders in <a target="_blank" href="https://www.businessinsider.com/student-loans-mohela-schumer-warren-sanders-invesigation-debt-cancellation-mismanagement-2024-2">calling on</a> the Consumer Financial Protection Bureau and state attorneys general to "investigate MOHELA and pursue action to the fullest extent possible under the law. Our nation's public servants, members of the military, and first responders deserve far, far better."Still, other federal servicers have not escaped scrutiny. In January, the Education Department <a target="_blank" href="https://www.businessinsider.com/student-loan-companies-education-department-punishment-borrowers-repayment-errors-billing-2024-1">withheld a combined $2 million in pay</a> from Nelnet, Aidvantage, and EdFinancial for failing to send on-time billing statements to borrowers.Despite the administration's efforts, many borrowers are confused with the status of their accounts — specifically when it comes to PSLF. BI <a target="_blank" href="https://www.businessinsider.com/student-loan-forgiveness-reversals-millennial-debt-releif-mistake-mohela-retirement-2024-3">previously spoke to</a> a <a target="_blank" href="https://www.businessinsider.com/mohela-reversing-student-loan-forgiveness-payments-reinstated-pslf-borrowers-forbearance-2024-2">few borrowers</a> who received loan forgiveness through PSLF last year, only to be told by MOHELA in February that it was a mistake and they have to restart their payments again."I'm very upset. I'm not going to be able to buy a new car," <a target="_blank" href="https://www.businessinsider.com/student-loan-forgiveness-reversals-mohela-mom-debt-cancellation-mistake-payments-2024-3">one of the borrowers said</a>. "My whole world has been flipped over in a matter of a week."

A major student-loan company is 'impeding' borrowers' debt cancellation and 'mishandling' their monthly bills, Elizabeth Warren says. She wants its CEO to face Congress.

<ul class="summary-list"><li>Four Democratic senators released a report on student-loan servicing errors since resuming repayment.</li><li>It found borrowers faced 3.9 million in "billing-related errors," including incorrect payments.</li></ul>Lawmakers have <a target="_blank" href="https://www.businessinsider.com/student-loan-repayment-issues-debt-relief-broken-industry-2023-9">highly scrutinized the return to repayment</a> for millions of student-loan borrowers in the fall. A new report from a group of Democrats offers the latest look into how borrowers fared during the transition.On Wednesday, Democratic Sens. Elizabeth Warren, Richard Blumenthal, Ed Markey, and Chris Van Hollen released a report on <a target="_blank" href="https://www.businessinsider.com/student-loan-bills-are-wrong-borrowers-servicers-fixing-errors-education-2023-11">student-loan servicer errors</a> amid the return to repayment.Exclusively viewed by Business Insider, the report said servicers made over 3.9 million "billing-related errors" once repayment resumed. That's based on data from the Education Department and servicer audits that included over 3 million <a target="_blank" href="https://www.businessinsider.com/student-loan-companies-education-department-punishment-borrowers-repayment-errors-billing-2024-1">delayed billing statements from the four major servicers</a>, 280,000 miscalculations for borrowers converting to the SAVE income-driven repayment plan, and 140,000 payment miscalculations due to income, family size, or marital status."The four student loan servicers that were under contract with ED at the end of the payment pause had ample time, clear contractual requirements, and sufficient funding from the federal government," the report said. "Yet, they still made a series of mistakes that harmed millions of borrowers when payments restarted."A letter from the Education Department to Warren in March offered additional details about borrowers' customer-service experiences. The letter, reviewed by BI, said call-abandonment rates surged for every servicer from July to September: Nelnet had an abandonment rate of 41.2%, Aidvantage had a rate of 34.3%, and Edfinancial and MOHELA had a rate of 24.4%.All servicers had responded to Warren in <a target="_blank" href="https://www.warren.senate.gov/imo/media/doc/Servicer%20Responses.pdf">a series of letters</a> that explained their servicing practices, along with why the return to repayment presented fresh challenges to the industry. In a January letter, MOHELA said that "due to its temporary, mercurial, and extreme nature, the current situation cannot be considered a steady-state environment.""While additional staff have completed training and begun responding to incoming calls reducing average wait times, the ongoing call volume and call wait times are anticipated to fluctuate throughout the on-ramp period, and after the on-ramp period ends in the fall," MOHELA said, referring to the 12 month on-ramp period that began in October during which any missed payments will not be actively reported to credit agencies.Notably, also on Wednesday, Warren is holding a hearing to examine MOHELA's servicing practices and its <a target="_blank" href="https://www.businessinsider.com/student-loans-mohela-schumer-warren-sanders-invesigation-debt-cancellation-mismanagement-2024-2">management of the Public Service Loan Forgiveness</a> program. While <a target="_blank" href="https://www.businessinsider.com/elizabeth-warren-slams-student-loan-company-mohela-ceo-congress-testimony-2024-4">Warren invited MOHELA's CEO to testify</a>, the company declined on his behalf, saying in a statement that it was "actively engaged in conversations with the Subcommittee and has offered its cooperation in addressing any questions and concerns by participating in a series of bipartisan briefings on the identified areas of interest about student loan servicing."Given the errors the federal servicers have made since the return to repayment, the Education Department <a target="_blank" href="https://www.businessinsider.com/student-loan-borrowers-bad-customer-service-education-department-oversight-repayment-2023-11">released an accountability framework</a> late last year that included a range of punishments should servicers fail to fulfill their contractual obligations, including withholding their pay and transferring borrowers to better-performing servicers."The Department's oversight strategy provides several pathways for identifying in real time problems that may harm borrowers," the department's March letter to Warren said. "Our oversight focuses on the borrower experience, which includes monitoring servicers, tracking complaints, and examining results-based outcomes to conduct a comprehensive review of service performance."Still, the Democratic lawmakers said in their report that more could be done to help borrowers harmed by servicing errors. The Education Department on Monday released <a target="_blank" href="https://www.businessinsider.com/biden-announces-new-student-loan-forgiveness-plan-who-qualifies-relief-2024-4">details for its new student-loan forgiveness plan</a>, and the lawmakers urged the department to include in the final rule debt relief for borrowers harmed by servicers."To remedy servicers' historic failures and protect borrowers from future harms, there must be a path for debt relief for borrowers harmed by their servicers," they wrote in the report.

Student-loan borrowers faced 3.9 million billing errors after entering repayment, a new report from 4 Democratic lawmakers says 

<ul class="summary-list"><li>Democratic lawmakers asked federal student-loan companies to provide data on their plans for repayment.</li><li>One company, MOHELA, said it anticipates "extensive servicing delays" due to a lack of resources.</li></ul>A major student-loan company that services over 7 million borrowers isn't too confident about its preparedness to <a href="https://www.businessinsider.com/student-loan-payment-pause-is-over-interest-resuming-borrower-balances-2023-8">enter repayment in a few days.</a>On Thursday, <a href="https://www.warren.senate.gov/imo/media/doc/Letters%20to%20Servicers1.pdf" target="_blank" rel="noopener">Sen. Elizabeth Warren sent letters to the CEOs of four federal loan servicers</a> regarding their plans to bring borrowers back into repayment beginning in October. Included in those letters were responses from the four companies — MOHELA, EdFinancial, Maximus, and Nelnet — on <a href="https://www.warren.senate.gov/imo/media/doc/Servicers%20Responses.pdf" target="_blank" rel="noopener">data</a> they provided to Warren and five of her Democratic colleagues in August on their communications with borrowers at that point.One of those companies, MOHELA, cautioned the lawmakers that repayment is unlikely to be as smooth as they might have hoped. MOHELA is responsible for managing the Public Service Loan Forgiveness portfolio, and according to data it provided, it expects to service 7,762,516 borrowers by October 1. However, it anticipates it will not be able to help all of those borrowers in a timely manner due to funding and resource constraints.The company said it currently has 474 customer service representatives, with another 606 in various stages of training, and it has a projected need of 1,177 in October. However, MOHELA said that Federal Student Aid's "demands have been changing rapidly" due to litigation results — like the Supreme Court striking down President Joe Biden's broad student-debt relief plan — and the requirement for a higher level of training for customer service representatives has strained the company's budget, it said."We are now facing a return-to-repayment set to bring an unprecedented surge in activity in the near future, one which is expected to last well into 2024," MOHELA said."While MOHELA is regularly assessing the situation, were MOHELA to move forward with further expanded staffing at its own expense, especially given the wildly fluctuating demands on our staff, the added personnel would threaten MOHELA's financial stability," it added. "Unfortunately, the immediate of return-to-repayment amid ever-increasing changes to the contract administration requirements and expanded training needs, combined with the lack of sufficient funding from FSA, means extensive servicing delays are a likely outcome."In Warren's Thursday letter, she pushed back on MOHELA's budget complaints, saying that she's "skeptical of [servicers'] claim that insufficient funding is keeping them from fulfilling their most foundational obligation considering that they were paid on average approximately $2 a month per account amounting to billions of dollars, while payments, interest, and collections were suspended during the public health emergency."Many borrowers have already been experiencing the customer service issues MOHELA mentioned. Not only have borrowers <a href="https://www.businessinsider.com/student-loan-borrowers-cant-reach-company-mohela-pslf-debt-relief-2022-10">spent hours on hold with their servicer</a> — some of them have also received inaccurate payment statements, prompting them to file complaints. MOHELA said that from July 1, 2022 to June 30, 2023 it received 36,309 complaints. That's compared to the 3,469 complaints Maximus, another servicer, received, and 3,063 from servicer EdFinancial.Nelnet — a different federal servicer — however, said in its response to the lawmakers that the "unprecedented situation we currently find ourselves in" has prevented it from delivering data on the habits of student-loan borrowers, and it said "the current environment presents challenges in being aware of the number of borrowers we will be servicing.""We do not yet have insight into potential relief programs that the government may enact and, therefore, are unsure how they may affect the number of borrowers we service," Nelnet said.It's clear some servicers are concerned about their abilities to manage this transition back into repayment — and borrowers will likely suffer the consequences.

A major student-loan company says 'extensive servicing delays are a likely outcome' as borrowers transition back into repayment — and it could 'last well into 2024'

<ul class="summary-list"><li>Rep. Cori Bush sent a letter to Missouri's attorney general regarding student-loan company MOHELA.</li><li>She asked what the state's plan is to ensure MOHELA pays its debt to the Lewis and Clark Discovery fund.</li></ul>A Democratic lawmaker doesn't want to let a major student-loan company off the hook when it comes to its financial obligations.On Thursday, Missouri Rep. Cori Bush sent a letter, first viewed by Business Insider, to the state's attorney general Andrew Bailey regarding his role in holding student company MOHELA — which is based in Missouri — accountable for its own debts.Notably, Bailey was among the attorneys general who filed a lawsuit to block President Joe Biden's first attempt at broad student-loan forgiveness, and his case succeeded in <a target="_blank" href="https://www.businessinsider.com/student-loan-forgiveness-blocked-supreme-court-strikes-down-debt-cancellation-2023-5">getting the Supreme Court to strike down the relief</a>. While MOHELA denied any direct involvement in the case, the attorneys general still claimed relief would hurt the company's revenue.The issue now concerns a program called the <a target="_blank" href="https://www.businessinsider.com/biden-student-loan-forgiveness-blocked-debt-relief-cancellation-lawsuit-2023-1">Lewis and Clark Discovery Initiative.</a> Missouri established it in 2007 to fund various state projects and higher education institutions, and MOHELA was initially expected to fund those programs.However, following the 2008 financial crisis, MOHELA continued to receive approval to delay its payments into the fund, with its latest extension ending in 2024. Bush wants Bailey to explain how he plans to hold MOHELA to that financial obligation, which currently totals a $107 million debt to Missouri."Now that the conservative majority on the Supreme Court ruled in your favor and blocked millions in relief from borrowers across our state, I am respectfully requesting information on how your office is working to ensure MOHELA plans to pay its own debts to the working people of Missouri," Bush wrote."Before the Supreme Court, your office argued that MOHELA was an instrumentality of the State," she continued. "What is your office currently doing to ensure that MOHELA fulfills its legal obligations to the State of Missouri, the Lewis and Clark Discovery Initiative, and the nearly one million student loan borrowers across our state?"Bailey's office did immediately respond to a request for comment from BI.The debt MOHELA owes to Lewis and Clark had some experts questioning the attorneys general's lawsuit to block student-debt relief. Essentially, the case claimed that debt relief would hurt Missouri's tax revenue, along with the revenue of MOHELA. It also said the state still has an obligation to pay into the fund, and debt relief would harm that effort.However, some experts said that given the fund has been dormant for years, <a target="_blank" href="https://www.businessinsider.com/biden-student-loan-forgiveness-blocked-debt-relief-cancellation-lawsuit-2023-1">that reasoning does not hold up</a>. Justice Ketanji Brown Jackson also <a target="_blank" href="https://www.businessinsider.com/how-will-supreme-court-rule-student-debt-cancellation-mohela-borrowers-2023-3">questioned that point during oral arguments in February 2023</a>."So we're talking about a fund that hasn't been contributed into because the state has waived the obligation to do so for at least a temporary period of time, and then, even if the funds were to go into this particular fund, you don't have a set of plans that you are planning to pursue with them?" Jackson said.Bush requested Bailey deliver a response regarding his plans for the Lewis and Clark fund by February 20. Her letter comes as millions of borrowers have recently resumed paying off their federal loans following an over three-year pause. Since bills started to become due in October, the Education Department has detected a range of errors across all servicers when it comes to best serving borrowers.For example, MOHELA was the first company to be hit with a $7 million penalty for <a target="_blank" href="https://www.businessinsider.com/student-loan-company-mohela-late-statements-borrowers-biden-withholding-pay-2023-10">failing to send on-time billing statements to millions of borrowers</a>. The department later withheld varying amounts of pay from the remaining servicers — Nelnet, Aidvantage, and Edfinancial — for the same reason.While servicers cited a lack of federal funds as a reasoning for strained customer service in a letter to Democratic lawmakers in December, Bush said that with MOHELA being the sole servicer of the Public Service Loan Forgiveness program, money should not be an issue."MOHELA has since recovered financially and remained more profitable than ever, particularly since its acquisition of the Public Service Loan Forgiveness (PSLF) accounts, which represent a huge increase in business," she said.

A major student-loan company owes debt of its own — but it's continuing to collect millions of borrowers' monthly bills. A Democratic lawmaker says it's time for it to pay up. 

<ul class="summary-list"><li>The Education Department awarded five student-loan companies new contracts to overhaul debt repayment.</li><li>The department said the contracts will deliver "major improvements" for student-loan borrowers.</li></ul>President Joe Biden's Education Department just took another step in overhauling the student-loan repayment system for millions of borrowers.On Monday, the department <a href="https://www.ed.gov/news/press-releases/us-department-educations-office-federal-student-aid-awards-new-contracts-five-companies-serve-borrowers-reduce-delinquency-and-improve-accountability" target="_blank" rel="noopener">announced</a> that it awarded five student-loan companies — Central Research, Inc., EdFinancial Services, Maximus Education, MOHELA, and Nelnet — new contracts to improve loan servicing for over 37 million borrowers with federal loans. Central is the only new company that signed a contract with the department. These new contracts are part of the department's <a href="https://studentaid.gov/sites/default/files/usds-fact-sheet.pdf?utm_content=&amp;utm_medium=email&amp;utm_name=&amp;utm_source=govdelivery&amp;utm_term=" target="_blank" rel="noopener">previously announced plan</a> to create a new loan servicing system that would implement "much-needed improvements to better serve borrowers," according to the press release, and the changes will start being implemented next year. Specifically, according to the department, the new contracts will facilitate reforms to targeted relief programs like Public Service Loan Forgiveness and the new income-driven repayment plan, along with helping borrowers avoid falling into default. "The Biden-Harris Administration is fixing broken programs like Public Service Loan Forgiveness and writing the most affordable repayment plan ever, and the Department of Education is working tirelessly to implement these policies and maximize benefits for borrowers," Under Secretary of Education James Kvaal said in a statement.According to the department, the contracts will make "major improvements" to loan servicing when they go into effect in 2024, including an improved customer service experience for borrowers and enhanced consumer protection rules. And as these new contracts are implemented, the department is extended the current servicer contracts through December 2024 to allow for a smooth transition for borrowers. Still, as the department noted, implementing these changes successfully is dependent on increased funding from Congress. Biden's budget <a href="https://www.businessinsider.com/student-loan-borrowers-bidens-budget-proposal-support-return-to-repayment-2023-3">requested $2.7 billion for Federal Student Aid</a> — a $620 million increase over the 2023 spending level — to carry out the reforms the department has announced. "This additional funding is essential to support students and student loan borrowers," the press release said. "The increase would allow FSA to continue to operate the student aid programs, implement critical improvements to student loan servicing, continue to modernize its digital infrastructure, and ensure successful administration of the financial aid programs through a simplified and streamlined application process for students and borrowers."As Insider has previously reported, many borrowers have experienced a range of problems dealing with the company that manages their debt, from <a href="https://www.businessinsider.com/student-loan-borrowers-cant-reach-company-mohela-pslf-debt-relief-2022-10">hours-long hold times on the phone</a> to inaccuracies with their payment counts.But the Republican-controlled House is unlikely to approve more funding to facilitate student-loan programs. Speaker of the House Kevin McCarthy, for example, <a href="https://www.businessinsider.com/student-loan-forgiveness-banned-debt-ceiling-bill-mccarthy-denying-constituents-2023-4">proposed cutting spending for the Education Department</a> to prohibit it from implementing student-loan forgiveness and creating a new income-driven repayment plan in his debt ceiling bill.This means that the department faces a rough road ahead because, along with overhauling student-loan repayment, it's planning to resume payment for millions of borrowers this year and carry out student-debt relief if the Supreme Court rules that it's legal. If FSA does not receive increased funding, carrying out those programs seamlessly could be complicated.

37 million student-loan borrowers will get 'the most affordable repayment plan ever' when new contracts with 5 companies go into effect next year, Biden's Education Department says

<ul class="summary-list"><li>The Education Department awarded five student-loan companies new contracts, including MOHELA.</li><li>MOHELA is at the center of a lawsuit seeking to permanently block Biden's student-debt relief.</li></ul>Missouri Rep. Cori Bush wants to be sure a student-loan company central to a lawsuit blocking President Joe Biden's student-loan forgiveness isn't' getting off easy.Last week, the Education Department announced <a href="https://www.businessinsider.com/student-loan-borrowers-getting-most-affordable-repayment-ever-new-contracts-2023-4">it awarded five student-loan companies</a> — Central Research Inc, EdFinancial Services, Maximus Education, Nelnet, and MOHELA — new contracts to improve loan servicing over the next five years for 37 million federal borrowers. As the department noted in its press release, these new contracts are part of its larger plan to overhaul loan-servicing and implement "much-needed improvements to better serve borrowers," like a new income-driven repayment plan.MOHELA, however, has fallen under scrutiny over the past year, primarily because <a href="https://www.businessinsider.com/student-loan-company-mohela-involved-lawsuit-against-biden-debt-cancellation-2022-10">it is a main focus in a lawsuit</a> filed by six Republican-led states at the end of last year that argued Biden's broad student-debt relief would harm their states' tax revenues, <a href="https://www.businessinsider.com/biden-student-loan-forgiveness-blocked-debt-relief-cancellation-lawsuit-2023-1">along with Missouri-based MOHELA's revenue</a>. Bush has long called for oversight over MOHELA, and she's keeping it up — even after it renewed its contract."The Department of Education must take proactive steps to seamlessly transition borrowers to repayments starting in the coming months. My colleagues and I will be watching the implementation of these new rules closely, particularly for MOHELA, to ensure the Public Service Loan Forgiveness program is being administered in a timely and efficient manner," Bush told Insider."No company should be profiting from the student debt crisis, especially MOHELA with their dubious record of customer service in the past," she continued. "My office will continue our work to hold student loan servicers accountable for their harm to our communities. Ultimately, there is still much work to be done to provide student debt relief, bolster college affordability, and begin the transition to a world without student debt at all."After the six GOP-led states filed their lawsuit to block Biden's plan to cancel up to $20,000 in student debt for federal borrowers, <a href="https://www.businessinsider.com/student-loan-company-mohela-involved-gop-lawsuits-cori-bush-2022-10">Bush wrote a letter to MOHELA CEO Scott Giles</a> requesting information on the extent to which the company was involved in the lawsuit. MOHELA later responded to Bush and said <a href="https://www.businessinsider.com/student-loan-company-mohela-denies-involvement-in-gop-lawsuit-biden-2022-11">it was not involved in the states' decision to sue</a>, but the states' lawyers proceeded to argue on behalf of potential revenue losses MOHELA would suffer from Biden's debt relief <a href="https://www.businessinsider.com/will-supreme-court-block-student-loan-debt-forgiveness-major-takeaways-2023-2">during Supreme Court oral arguments in February</a>.The liberal Supreme Court justices appeared skeptical of the states' standing to involve MOHELA in their case, and a <a href="https://rooseveltinstitute.org/2023/05/02/new-analysis-the-basis-of-the-supreme-court-case-against-student-debt-cancellatio-is-fundamentally-flawed/" target="_blank" rel="noopener">recent analysis</a> from left-leaning think tank Roosevelt Institute and advocacy group Debt Collective, based on Freedom of Information Act requests, said that MOHELA actually would not suffer any financial harm from debt cancellation because it would still profit from managing PSLF. As Bush referenced, <a href="https://www.businessinsider.com/student-loan-company-takes-over-pslf-accounts-debt-cancellation-mohela-2022-7">MOHELA is responsible for</a> the whole PSLF portfolio, which forgives student debt for government and nonprofit workers after ten years of qualifying payments. The transition of millions of public servants' accounts over to MOHELA has been far from seamless. A number of borrowers have previously told Insider that they have spent hours on the phone waiting to get simple questions answered from MOHELA regarding their payment status, leaving them in financial limbo.To be sure, ensuring accountability over servicers and improving customer service largely depends on increased funding from Congress for the Federal Student Aid office. Biden's budget <a href="https://www.businessinsider.com/student-loan-borrowers-bidens-budget-proposal-support-return-to-repayment-2023-3" rel="">requested $2.7 billion for Federal Student Aid</a> — a $620 million increase over the 2023 spending level — to carry out all of the Education Department's initiatives, an increase the department said is "essential to support students and student loan borrowers.""Students and their families deserve transparency and accountability from student loan servicers to ensure they can take advantage of the most affordable ways to repay their loans -- and it's critical that the Department of Education hold those servicers to the highest of standards," Massachusetts Sen. Elizabeth Warren told Insider. "That's why I'll continue to fight for the increased funding the Student Aid Administration needs to provide quality services and support at-risk borrowers."

A student-loan company at the center of a lawsuit blocking Biden's debt cancellation with a 'dubious record of customer service' just got a new contract to keep servicing millions of borrowers, Cori Bush says

<ul class="summary-list"><li>The Education Dept. announced it extended contracts for six student-loan companies through 2023.</li><li>The companies agreed to higher standards to protect borrowers and ensure a smooth transition to repayment in 2022.</li></ul>After President Joe <keyword id="60973" type="UNKNOWN" weightage="60" keywordseo="biden" source="Orion">Biden</keyword> <a href="https://www.businessinsider.com/student-loan-debt-cancellation-payment-pause-borrowers-disabilities-defrauded-2021-6">announced</a> in August the "final" extension of the student-loan payment freeze during the pandemic, <a href="https://www.businessinsider.com/public-service-student-loan-forgiveness-pheaa-elizabeth-warren-2021-7">three</a> <a href="https://www.businessinsider.com/student-loan-company-shutting-down-granite-state-management-pheaa-borrowers-2021-7">student-loan</a> <a href="https://www.businessinsider.com/student-loan-company-navient-asked-permission-to-shut-down-2021-9">companies</a> announced plans to shut down their federal services, raising alarms for borrowers and advocates who fear an administrative mess with restarting payments next year.But the <keyword id="11897874" type="UNKNOWN" weightage="60" keywordseo="education-department" source="Orion">Education Department</keyword> made clear on Friday that the six student-loan companies continuing their contracts agreed to higher standards, both during the transition to repayment and for the duration of their contracts.The department announced in a <a href="https://www.ed.gov/news/press-releases/us-department-education-increases-servicer-performance-transparency-and-accountability-loan-payments-restart">press release</a> that it extended contracts for six student-loan companies, and within those contracts are stronger standards for performance, transparency, and accountability that will protect borrowers that will be "critical" in ensuring a smooth transition into repayment. Specifically, the new terms give the Federal Student Aid (<keyword id="12136822" type="UNKNOWN" weightage="60" keywordseo="fsa" source="Orion">FSA</keyword>) office greater ability to monitor issues with servicers as they arise and requires the companies to comply with state, local, and federal law related to loan servicing."FSA is raising the bar for the level of service student loan borrowers will receive," FSA head <keyword id="12136821" type="UNKNOWN" weightage="60" keywordseo="richard-cordray" source="Orion">Richard Cordray</keyword> said in a statement. "Our actions come at a critical time as we help borrowers prepare for loan payments to resume early next year. The great work done by our negotiating team here enables us to ensure that loan servicers meet the tougher standards or face consequences."The press release noted that the six companies - Great Lakes, HESC/Edfinancial, MOHELA, Navient, Nelnet, and OSLA Servicing - agreed to contract extensions through December 2023. Notably, while Navient signed a contract extension in September, it later became the <a href="https://www.businessinsider.com/navient-elizabeth-warren-good-riddance-student-loan-company-2021-9">third company</a> last month to request a shut down of its federal loan services, which the department is currently reviewing. FSA will measure the companies each quarter on their abilities to meet goals related to:<ul><li>The percentage of borrowers who end a call before reaching a customer service representative;</li><li>How well customer service representatives answer borrowers' questions and navigate repayment options;</li><li>Whether servicers process borrowers' request accurately the first time;</li><li>And the overall level of customer service provided to borrowers.</li></ul>Cordray said during remarks at a conference earlier this month that student-loan companies are <a href="https://www.businessinsider.com/student-loan-companies-shut-down-accountability-richard-cordray-debt-oversight-2021-9">choosing to shut down</a> rather than face more accountability. To be sure, he did not comment on specific companies but noted that "not everybody was thrilled" with his plans to strengthen oversight of the industry.This is the Biden administration's latest effort cracking down on student-loan abuses. Last week, FSA <a href="https://www.businessinsider.com/student-loan-abuses-new-enforcement-office-biden-education-department-2021-10">announced</a> it is reviving an enforcement office to "vigorously investigate" schools' student-loan and federal aid abuses, and it comes on the tail of Rohit Chopra's <a href="https://www.businessinsider.com/rohit-chopra-cfpb-student-loan-watchdog-elizabeth-warren-ally-2021-9">confirmation</a> to lead the Consumer Financial Protection Bureau (CFPB), who emphasized his plans to protect student-loan borrowers.As Insider has previously <a href="https://www.businessinsider.com/student-loan-servicers-communication-debt-pile-borrowers-navient-pheaa-2021-7">reported</a>, borrowers have experienced immense difficulty receiving help from their student-loan companies, <a href="https://www.businessinsider.com/public-service-loan-forgiveness-student-debt-wiped-out-canceled-2021-8">preventing them</a> from paying off their <keyword id="11896049" type="UNKNOWN" weightage="60" keywordseo="student-debt" source="Orion">student debt</keyword>. Charles Moore, 49, previously told Insider he had a simple question about consolidating his loan with his wife's, and he ended up being on the phone for four hours trying to get an answer."Nobody wants to assist you," Moore, said. "And you don't know how to get help. Even though you go back and forth, the lender doesn't know what the servicer is doing and the servicer doesn't know what the lender is doing."

Biden's Education Dept. sends a message to 6 student-loan companies: 'Meet the tougher standards or face consequences'

<ul class="summary-list"><li>The Education Dept. renewed contracts for 7 student-loan companies for $2 billion.</li><li>Navient was one of those companies, but it has requested to transfer its federal loan portfolio to another company.</li></ul>In just over 100 days, the federal student-loan <a href="https://www.businessinsider.com/student-loan-debt-cancellation-payment-pause-borrowers-disabilities-defrauded-2021-6">payment pause</a> will end and 43 million borrowers will have to start making payments again. Some details on how that will happen are still in flux.The <keyword id="11897874" type="UNKNOWN" weightage="60" keywordseo="education-department" source="Orion">Education Department</keyword> announced in a <a href="https://www.ed.gov/news/press-releases/us-department-education-increases-servicer-performance-transparency-and-accountability-loan-payments-restart">press release</a> on Friday that it <a href="https://www.businessinsider.com/student-loan-debt-companies-renewing-contracts-held-to-higher-standards-2021-10">reached an agreement</a> with six student-loan companies who renewed their contracts on higher accountability measures, including providing better customer service to borrowers and requiring the companies to comply with state and federal law with regards to loan servicing. In addition to the new standards, though, the department also noted it is in the process of negotiating one student-loan company, Navient's, <a href="https://www.businessinsider.com/student-loan-company-navient-asked-permission-to-shut-down-2021-9">request to transfer</a> its federal <keyword id="11896050" type="UNKNOWN" weightage="60" keywordseo="student-loans" source="Orion">student loans</keyword> to a new servicer even after being granted a $391 million contract extension last month. This comes after two other companies - the <a href="https://www.businessinsider.com/public-service-student-loan-forgiveness-pheaa-elizabeth-warren-2021-7">Pennsylvania Higher Education Assistance Agency (PHEAA)</a> and <a href="https://www.businessinsider.com/student-loan-company-shutting-down-granite-state-management-pheaa-borrowers-2021-7">Granite State Management and Resources</a> - announced their plans to shut down their loan services in July, requiring a combined 16 million borrowers to pay their debt to new companies come February.In total, the government offered seven student-loan companies over $2 billion to renew their contracts through at least the end of next year, according to a government <a href="https://sam.gov/content/home">website</a>, but not all of them took the government up on its offer. Here's what that means.<h2>Six student-loan companies will likely service the whole federal loan portfolio </h2>Great Lakes, HESC/Edfinancial, MOHELA, Nelnet, and OSLA Servicing will likely service student loans for 43 million federal borrowers through at least 2023. Navient, which services 6 million federal accounts, agreed to a contract extension but later requested to transfer its accounts to another company, called Maximus.An Education Department spokesperson previously <a href="https://www.businessinsider.com/student-loan-company-shutdowns-dont-alter-payment-restart-date-2021-9">told</a> Insider that before approving the transfer, the department will ensure "Maximus has adequate capacity, resources, and management experience to ensure a smooth transition for borrowers.""We will not approve this proposal or begin any transition until we are satisfied Maximus is fully capable of delivering high-quality service," the spokesperson added.The department also noted in the Friday press release it did not reach an agreement with PHEAA on a one-year contract extension - something it had <a href="https://twitter.com/mstratford/status/1446512562380607490">proposed</a> to give more time to transfer its 8.5 million accounts to a new company. The administrative burden with PHEAA's transfer will likely prove difficult, given that it manages borrowers under the Public Service Loan Forgiveness (PSLF) program, which is supposed to forgive <keyword id="11896049" type="UNKNOWN" weightage="60" keywordseo="student-debt" source="Orion">student debt</keyword> for public servants after ten years of qualifying monthly payments. The Federal Student Aid (<keyword id="12136822" type="UNKNOWN" weightage="60" keywordseo="fsa" source="Orion">FSA</keyword>) office has <a href="https://studentaid.gov/announcements-events/fedloan-stop-servicing-loans">announced</a> that some federal accounts under PHEAA will be transferred to MOHELA, and the transfer of the remaining accounts are still to be determined, and borrowers should be notified of the switch.<h2>The department still 'expects' to restart payments on February 1</h2>The Education Department told Insider it had previously completed smooth transfers of borrowers to new student-loan companies, but this will be the first time it has to bring 43 million borrowers back into repayment after a year and half, along with switching 16 million borrowers' accounts.But this administrative burden is not changing the department's timeline to return to repayment."We will continue to work to ensure that all of our borrowers can experience a successful return to repayment," an Education Department spokesperson previously <a href="https://www.businessinsider.com/student-loan-company-shutdowns-dont-alter-payment-restart-date-2021-9">told</a> Insider. "The Department expects student loan payments to resume after Jan. 31, 2022," the spokesperson added, when asked if the companies shutting down would change the timeline.This has lawmakers and advocates concerned. Last month, ranking members of the House and Senate education committees, Rep. Virginia Foxx and Sen. Richard Burr, <a href="https://www.businessinsider.com/student-loan-debt-payment-restart-virginia-foxx-richard-burr-concerned-2021-9">sent a letter</a> to Education Secretary <keyword id="11897873" type="UNKNOWN" weightage="60" keywordseo="miguel-cardona" source="Orion">Miguel Cardona</keyword> saying they were "deeply concerned" about the payment restart. "The lack of clarity and guidance about the process surrounding returning borrowers to repayment is as troubling as the process is uncertain," the Republican lawmakers wrote. Reforms to the student-loan industry are underway, though. FSA <a href="https://www.businessinsider.com/student-loan-debt-companies-renewing-contracts-held-to-higher-standards-2021-10">expressed</a> committement to hold companies to higher standards to ensure borrowers are not misled, coming on the tails of <a href="https://www.businessinsider.com/student-loan-abuses-new-enforcement-office-biden-education-department-2021-10">reviving</a> an enforcement office to "vigorously investigate" schools' student-loan and federal aid abuses.

You Searched For "edfinancial" and got 11 results

A student-loan company just got hit with a $1 million penalty for 'breaking the law' by lying to borrowers about loan forgiveness, Biden's top consumer watchdog says

Ayelet Sheffey

758,000 more student-loan borrowers didn't receive on-time billing statements in the fall — and they won't have to make payments until the issues are resolved

Ayelet Sheffey

Student-loan companies explain why they're not to blame for borrowers' repayment challenges. A group of Democrats said it's still 'deeply concerning.'

Ayelet Sheffey

A major student-loan company is 'impeding' borrowers' debt cancellation and 'mishandling' their monthly bills, Elizabeth Warren says. She wants its CEO to face Congress.

Ayelet Sheffey

Student-loan borrowers faced 3.9 million billing errors after entering repayment, a new report from 4 Democratic lawmakers says

Ayelet Sheffey

A major student-loan company says 'extensive servicing delays are a likely outcome' as borrowers transition back into repayment — and it could 'last well into 2024'

Ayelet Sheffey

A major student-loan company owes debt of its own — but it's continuing to collect millions of borrowers' monthly bills. A Democratic lawmaker says it's time for it to pay up.

Ayelet Sheffey

37 million student-loan borrowers will get 'the most affordable repayment plan ever' when new contracts with 5 companies go into effect next year, Biden's Education Department says

Ayelet Sheffey

A student-loan company at the center of a lawsuit blocking Biden's debt cancellation with a 'dubious record of customer service' just got a new contract to keep servicing millions of borrowers, Cori Bush says

Ayelet Sheffey

Biden's Education Dept. sends a message to 6 student-loan companies: 'Meet the tougher standards or face consequences'

Ayelet Sheffey

Millions of student-loan borrowers don't know who they'll be paying when the payment freeze lifts in 100 days

Ayelet Sheffey