Some student-loan borrowers mistakenly received past-due notices. Correction emails are coming.

Aug 05, 2026 04:30 PM - 1 month ago 386

That past-due announcement connected your student-loan payments mightiness beryllium a mistake.

Over the past fewer days, immoderate borrowers whose accounts are managed by student-loan servicer MOHELA received notices that their loans were past owed and astatine consequence of default. In reality, their accounts are not astatine risk, and the notices were sent successful error.

An Education Department spokesperson confirmed to Business Insider that the section is alert of an rumor affecting "a mini number of borrowers astatine 1 servicer."

"The rumor has been fixed, and impacted borrowers will beryllium notified by email of the error," the spokesperson said.

This comes arsenic the section is carrying retired President Donald Trump's student-loan repayment overhaul, which took effect July 1. It includes caller repayment plans and the modulation of millions of borrowers disconnected the Biden-era SAVE plan. In summation to higher monthly payments resulting from the changes, borrowers person reported administrative errors successful their accounts and difficulty obtaining assistance from their servicers.

For example, 6,000 borrowers recently received notices to reapply for an income-driven repayment scheme aft receiving the incorrect payment magnitude successful June. Affected borrowers said these errors make it difficult to fund because they are not receiving meticulous accusation astir their student-loan payments.

A March study from the Government Accountability Office recovered that the Federal Student Aid stopped assessing servicers' billing accuracy owed to staffing cuts astatine the Education Department. A spokesperson said that the section "remains focused connected ensuring student indebtedness borrowers person the highest-quality customer service."

Have a communicative to stock astir student loans? Contact this newsman astatine [email protected].