WASHINGTON (AP) — The Biden administration is docking more than $2 million in payments to student loan servicers that failed to send billing statements on time after the end of a coronavirus pandemic payment freeze. The Education Department said Friday it will withhold payments from Aidvantage, EdFinancial and Nelnet for failing to meet their contractual […]
Tag: servicers
Student loan servicers’ ‘gross servicing failures’ impact borrower repayment
Three months after student loan payments restarted, some borrowers are experiencing delays and seeing billing errors from student loan servicers. What’s causing the turmoil, in part, is the entry of new loan providers into the process after three companies bowed out in 2021. Around 44% of federal student loan borrowers who had payments resume in […]