The return of student loan payments have been marred by some errors, according the Department of Education. After a three-year pause on payments, borrowers had to return to their payment schedules this month.
However, 305,000 have received monthly bills with the wrong amount with some payments that have doubled. Another issue is that some loans have been transferred from one servicer to another without the proper loan information. Some of the loan companies ended their contracts with the federal government during the the forbearance period.
Furthermore, the Supreme Court’s ruling that struck down the Biden Administration’s loan forgiveness program has also created havoc for borrowers who could have had $20,000 of their loans forgiven.
The Biden Administration created a new income-driven program called SAVE (Saving on a Valuable Education) which offers smaller payment amounts for low-income borrowers. However, some of those who have applied continue to wait for their applications to be processed.
Borrowers who received the wrong amount are asked to contact their loan servicer and point out the issue.
In a statement, the Department of Education shared, “Because of the Department’s stringent oversight efforts and ability to quickly catch these errors, servicers are being held accountable and borrowers will not have payments due until these mistakes are fixed.”
