"Biden Administration Sanctions Loan Servicers as Billing Errors Impact 758K Borrowers"

The U.S. Education Department is penalizing three loan servicing companies for failing to send timely billing statements to an additional 758,000 student loan borrowers, adding to the 2.5 million borrowers previously affected. The companies, Aidvantage, EdFinancial, and Nelnet, will face financial penalties and affected borrowers will not accrue interest or be required to make payments until the issues are resolved. This comes amid a challenging restart to federal student loan payments after a pandemic-induced pause, and coincides with a Consumer Financial Protection Bureau report on backlogs in processing applications for Biden's new loan repayment program. The Education Department's actions reflect a commitment to holding servicers accountable for their contractual obligations.