The Education Department announced it's withholding $7.2 million in pay from student-loan company MOHELA. It's a result of MOHELA failing to deliver on-time billing statements to 2.5 million borrowers. AdvertisementAdvertisementPresident Joe Biden's Education Department just enacted its first punishment on a student-loan company for its repayment mistakes. MOHELA and the Education Department have previously expressed concerns with limited resources due to Congress failing to increase funding for Federal Student Aid in the previous fiscal year. The Education Department did not immediately respond to Insider's request for comment on whether there might be any adverse effects of withholding MOHELA's pay.

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