The U.S. Department of Education will penalize student loan servicer Mohela, or the Missouri Higher Education Loan Authority, for its failure to send timely billing statements to 2.5 million borrowers.

As a result of Mohela’s errors, more than 800,000 borrowers were delinquent on their loans, the Education Department said in a statement Monday.

The department is withholding $7.2 million in payment to Mohela for October and has directed the servicer to place all affected borrowers in forbearance until the issue is fully resolved, it said.

  • SoylentBlake@lemm.ee
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    1 year ago

    Missouri’s fascist Attorney General sued the government on their behalf, NOT at their behest.

    They spent their time, and taxpayer money, to sue for a company not asking for it just to fuck over college students/alumni