"Biden Administration Sanctions Loan Servicers Amidst Widespread Billing Errors Affecting Students and Economy"

The Biden administration is penalizing student loan servicers Aidvantage, EdFinancial, and Nelnet by withholding over $2 million in payments due to their failure to send timely billing statements after the end of a pandemic payment freeze. The servicers' errors affected over 750,000 borrowers, and this follows a previous $7.2 million withholding from MOHELA for similar issues. Borrowers affected by late statements will be placed in administrative forbearance, and the Education Department is working on a new proposal for targeted student loan cancellation after a previous plan was rejected by the Supreme Court.