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☆ Some student-loan borrowers are surprised to find their accounts are suddenly in forbearance. Here's why that might be happening.
▼ + stars: | 2023-11-09 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

Some student-loan borrowers are logging into their accounts and seeing it in forbearance. AdvertisementAdvertisementIf you recently logged into your student-loan account and were surprised to see it placed in forbearance, you're not alone. Over the past few days, student-loan borrowers primarily serviced by MOHELA have logged into their accounts to see their loans were no longer in active repayment. Still, the borrower's account continues to show a payment due with interest accruing, according to documents reviewed by Insider. AdvertisementAdvertisementWas your student-loan account placed on administrative forbearance without any notice?

Persons: servicer, —, MOHELA, servicers, forbearance, Scott Buchanan, Elizabeth Warren, Ed Markey, Chris Van Hollen, Richard Blumenthal, Scott Giles Organizations: Department, Service, Public, Student Loan, — Locations: forbearance, MOHELA, Sens

☆ A government shutdown in 12 days could make student-loan borrowers' repayment and customer service struggles even worse
▼ + stars: | 2023-11-06 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

A shutdown could worsen the repayment challenges student-loan borrowers are experiencing. AdvertisementAdvertisementA government shutdown is once again looming, and it's threatening an already precarious return to repayment for student-loan borrowers. Thousands of federal workers would be furloughed, meaning Americans could face delays with customer service in programs like Social Security, along with student-loan repayment assistance. Even before federal student-loan payments officially resumed in October, borrowers were experiencing severe delays getting help from their student-loan servicers due to hours-long hold times and issues processing paperwork. Further limiting the number of customer service representatives available in the event of a shutdown would place a greater strain on borrowers.

Persons: —, Mike Johnson, Johnson, Rosa DeLauro, Scott Buchanan Organizations: Service, Washington, Democratic, Social Security, Management, Education, Education Department, Federal, Aid, Student Loan, —

☆ Student-loan borrowers struggling with repayment need more help than what the Education Department has offered — and they might not get it
▼ + stars: | 2023-11-04 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

The Education Department is strengthening oversight by withholding pay from one servicer, MOHELA. AdvertisementAdvertisementPresident Joe Biden's Education Department made one thing very clear this past week: Student-loan companies cannot get away with bad behavior. It's unclear at this point how withholding pay from a servicer would impact its operations, and whether the impact would trickle down to borrowers. AdvertisementAdvertisementWith Republicans holding a majority in the House, it's unlikely Federal Student Aid will see boosted funding in the upcoming year. Buchanan noted that he's still determining how exactly withholding pay would impact operations and added that he's "not making any excuses for the mistakes here."

Persons: —, Joe Biden's, MOHELA, Scott Buchanan, Jared Bass, Bass, servicers, Buchanan, he's, It's, it'll Organizations: Education Department, Service, Joe Biden's Education Department, Department, Federal Student Aid, Student Loan, —, Education, Center, American Progress, Federal, Aid

☆ A major student-loan company is transitioning millions of borrowers' accounts to a new platform — and it could mean up to 30-day delays posting payments
▼ + stars: | 2023-10-27 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Student-loan company MOHELA said on its website that it's transitioning borrowers to a new platform. The switch could mean up to 30-day delays in posting new payments. MOHELA borrowers will have to establish a new account on the platform, and its mobile app will no longer be available once the transition is complete. The announcement of this change comes less than a month after federal student-loan payments resumed following an over three-year pause. For borrowers on auto debit with their payments, MOHELA also said it'll have a new name on its new platform: auto pay.

Persons: MOHELA, —, Joe Biden's, Scott Buchanan, servicers —, it'll, Nelnet —, Nelnet Organizations: Service, Joe Biden's Education Department, Student Loan, —, The Education Department

☆ Why paying off your student loans won't get easier anytime soon
▼ + stars: | 2023-10-02 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +14 min

Student-loan borrowers are entering uncharted territoryThe Education Department has never had to reenter 28 million people into payments at the same time. Plus, federal servicers' technology may not be up to the task. In contrast, federal student-loan servicing has been contracted out to five companies, and the government doesn't have the resources to fully keep tabs on the industry. "So there really were deep-rooted structural problems in the loan programs on the policy design but also on the execution side," Kvaal said. As the years went on, the GAO continued to identify flaws in student-loan programs that were hurting borrowers.

Persons: Greg Ogden, Ogden, I've, servicer, he's, he'd, We're, Sen, Elizabeth Warren, James Kvaal, —, Kvaal, Barack Obama's, Obamacare, servicers, Scott Buchanan, servicers —, servicer MOHELA, MOHELA, Biden, Virginia Foxx, she's, Cardona, it's, Foxx, Carolyn Fast, Joe Biden's, Buchanan, Warren, Pamela Herd, Herd, Melissa Emrey, that's, Miguel Cardona, we're Organizations: Public, Education Department, Department, Student Loan, —, GOP, The Century Foundation, Federal Student Aid, Georgetown University, Medicare, Student Aid, Office, Biden, Social, Education, Consumer Financial, Emrey, Federal, Aid Locations: servicers, Arras

☆ Student-loan borrowers eligible for debt cancellation might be 'forced back into repayment' anyway because of their servicer's poor customer service, 6 Democratic senators say
▼ + stars: | 2023-09-21 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

Six Democratic lawmakers requested the Education Department look into student-loan company MOHELA. They said they're concerned with paperwork delays that could force borrowers who qualify for PSLF relief back into repayment. Federal student-loan payments are resuming on October 1. "With the restart of repayments, these issues are likely to worsen for borrowers," the lawmakers said in the letter. "Borrowers who are eligible to have their debt cancelled under the PSLF program should not be forced back into repayment due solely to MOHELA's processing delays, which cause difficult financial situations for so many borrowers.

Persons: MOHELA, New Jersey Sen, Bob Menendez, Sen, Elizabeth Warren, Secretary Miguel Cardona, they've, Angus King, Alex Padilla, Ed Markey, Cory Booker, Cardona, Katie Porter, Joe Courtney, Scott Giles, that's, Scott Buchanan, servicers — Organizations: Democratic, Education Department, Federal, Service, Secretary, Public, MOHELA, Department, Student Loan, — Locations: Wall, Silicon, New Jersey, PSLF, Sens

☆ Why student-loan borrowers could face a 'perfect storm' of obstacles once payments resume next month
▼ + stars: | 2023-09-04 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +7 min

Experts told Insider lack of broad debt relief and high inflation could contribute to the challenges. After more than three years, President Joe Biden officially ended the pandemic pause on federal student-loan payments, with waived interest, on Friday. "Before the pandemic, borrowers were already choosing between meeting their own basic needs and making their student-loan payments. "The more resource-strapped a servicer is and the more resource-strapped FSA is, the heightened concerns we have for that treatment of borrowers and just for the accuracy on the part of servicers giving information to borrowers," Hall said. In the meantime, the department recommends borrowers make their payments and wait for Biden's new plan for broad debt relief.

Persons: Joe Biden, she's, it's, Carolyn Fast, servicers, Biden, Stephanie Hall, Hall, Scott Buchanan, —, there's Organizations: Service, The Century Foundation, Education Department, An Education Department, Center for American Progress, Department, Student Loan, —, Management, Federal, Aid, Federal Student Aid Locations: Wall, Silicon

☆ A $49,000 monthly student-loan bill and incomplete debt relief: Borrowers are facing confusion as repayment looms
▼ + stars: | 2023-08-20 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +8 min

Some student-loan borrowers are running into hurdles leading up to the payment resumption. Insider spoke to borrowers with inaccurate monthly statements and incomplete debt relief. Jess's incorrect monthly payment statement is just one of the challenges borrowers are facing as President Joe Biden's Education Department and federal student-loan companies work to transition millions of borrowers back into repayment. This announcement was part of the department's one-time account adjustment to get relief to borrowers who have reached the repayment threshold. "Right now, House Republicans are pursuing an appropriations bill that cuts $22.5 BILLION from education," Education Secretary Miguel Cardona wrote on X last month.

Persons: Jess, couldn't, Jess —, —, she's, there's, Joe Biden's, Scott Buchanan, servicers —, Buchanan, we've, Karin Smith, Smith, I'm, It's, haven't, Miguel Cardona Organizations: Service, Joe Biden's Education Department, Student Loan, —, Education Department, The Education Department, House Republicans, Republican Locations: Wall, Silicon

☆ A student-loan company's call center briefly shut down due to 'technical issues' after it started notifying borrowers of their monthly payment amount in October
▼ + stars: | 2023-08-03 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

Student-loan company Nelnet started notifying borrowers of their monthly payments in October. Shortly after, borrowers took to X to complain about inability to reach the company's customer service. Nelnet responded on X that its call center briefly shut down, and it's receiving an influx of calls and emails. The Education Department and student-loan servicers have never transitioned millions of borrowers back into repayment at this scale. Do you have concerns with the return to student-loan repayment?

Persons: Nelnet, —, couldn't, servicers —, Joe Biden, servicers, I'm Organizations: Service, Education Department, The Education Department, Federal Student, Republicans, Federal Student Aid Locations: Wall, Silicon

☆ Third Point Real Estate's managing partner said it's 'a foolish debate' to say the office market will fail
▼ + stars: | 2023-06-11 | by ( Al Yoon | ) www.businessinsider.com time to read: +9 min

Frank Scavone, managing partner of Third Point Real Estate Strategies, said offices aren't dead. Frank Scavone, the managing partner of Third Point Real Estate Strategies, told Insider he's up for the challenge. But are there opportunities now for investors like Third Point Real Estate Strategies? What's going to happen with all the commercial real estate debt coming due in this higher interest rate environment? And let's not forget about the more than $300 billion in dry powder aimed at North American commercial real estate investment.

Persons: Frank Scavone, Scavone, Daniel Loeb's, —, Trepp, CBRE, That's, San Francisco — Organizations: Service, Third Point, Hedge, CBRE, downtown, Employers, North Locations: San Francisco, downtown San Francisco, Marin County, York, multifamily, New York City

☆ A student-loan borrower was promised a $5,000 refund on payments after Biden's broad debt relief. Months later, she's still waiting — and no one is picking up the phone to help.
▼ + stars: | 2023-03-19 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +7 min

Roxanne Dougherty, 31, is waiting for a $5,000 refund on her student-loan payments. The Education Department directed Insider to guidance on refunds posted on Federal Student Aid's website. "No one is taking the time to help me or to listen to me when it comes to MOHELA," Dougherty said. "It just seems like there's something in it for them to not help," Dougherty said. Are you still waiting for a refund on your student-loan payments?

☆ Meet a 30-year-old with $110,000 in student debt who chose her job in hopes of public-service loan forgiveness — but her balance just keeps growing
▼ + stars: | 2022-10-30 | by ( Juliana Kaplan | Ayelet Sheffey | ) www.businessinsider.com time to read: +7 min

Kjerstin Laine, 30, owes over $110,000 in student debt from undergraduate and graduate programs. But interest means she's barely paid it off, and Biden's forgiveness is just a drop in the bucket. For Laine, a 30-year-old who has over $110,000 in student debt, the $20,000 in forgiveness she's set to get from President Joe Biden's plan is just a drop in the bucket. Her situation points to the larger structural issues underpinning the student debt crisis, where first-generation and lower-income students take on huge debt burdens to get ahead and up their earnings but still find themselves buried under ever-growing balances. The company that manages the entire Public Service Loan Forgiveness portfolio — MOHELA — isn't making matters any easier.

☆ Hours-long hold times with their student-loan company are keeping public servants in a 'limbo period' wondering if they'll get the debt relief they qualify for
▼ + stars: | 2022-10-22 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +8 min

Student-loan borrowers in public service have reported issues reaching their loan company, MOHELA. Regardless of who is to blame for the long hold times, it's leaving Nathan in a financially precarious situation. "I'm not even trying to call and ask about the student loan forgiveness. 'Restarting payments is a massive concern'Neither Kate nor Nathan know how much they will have to pay monthly once student-loan payments resume in January. While Nathan and Kate are grateful for the broad debt relief, their primary concern is ensuring their time spent working in public service is accounted for.

☆ It is 'unconscionable' that a major student-loan company would be involved in lawsuits that would 'rob millions' of borrowers of Biden's debt cancellation, a Democratic lawmaker says. She wants answer
▼ + stars: | 2022-10-18 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

Rep. Cori Bush requested information from student-loan company MOHELA on its involvement in a lawsuit. Six GOP-led states recently argued Biden's debt relief would hurt the business operations of MOHELA. "It is unconscionable that your company—as one of the largest student loan companies in the world—would be involved in overtly political efforts to rob millions of their right to student loan debt relief," Bush wrote. "To date, your company has remained silent about the legal efforts filed on your behalf to halt President Biden's student debt cancellation program. Does MOHELA support efforts to block debt relief in an effort to preserve its own profits?

☆ 8 million student-loan borrowers have already applied for debt cancellation 'without a glitch,' Biden says
▼ + stars: | 2022-10-17 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

Biden officially launched the student-loan forgiveness application website. He said 8 million borrowers had applied during the beta testing period "without a glitch." During his remarks, Biden noted that over 8 million borrowers applied over the weekend "without a glitch or any difficulty." "It means more than 8 million Americans are starting this week on their way to receiving life changing relief," Biden said. The department recommends applying before mid-November to ensure relief hits borrowers' accounts before payments resume in January 2023.

☆ A worker at a student-loan company says the 'lack of guidance' from Biden's Education Department on debt cancellation is hurting borrowers: 'I'm just so worried people are going to be left out'
▼ + stars: | 2022-09-18 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

A student-loan company worker expressed concern with the lack of guidance on Biden's debt relief. "There's a complete lack of guidance from the Education Department on what to advise borrowers," the worker, who requested to remain anonymous but whose identity is known to Insider, said. The worker specifically assists borrowers within the Federal Family Education Loan (FFEL) program, who have loans that are commercially-held and not eligible for federal relief. Currently, the Education Department is advising those borrowers to consolidate their loans into direct federal loans so they can qualify for forgiveness. In response to the worker's concerns, an Education Department spokesperson pointed Insider to the FFEL guidance already on its website and did not have any additional details to provide.

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