"Thousands of Student Loan Borrowers Granted Forgiveness, but Obstacles Remain"
The Biden administration and a class of student loan borrowers reached a landmark settlement agreement, providing at least $6 billion in student loan forgiveness to over 260,000 borrowers. However, a major loan servicer, MOHELA, is accused of violating the terms of the agreement by notifying borrowers that they have to start repaying their loans in October, contrary to the forbearance status specified in the settlement. The legal organization representing the borrowers, the Project on Predatory Student Lending, has warned of potential legal action if the collections efforts continue. This issue adds to the problems faced by borrowers as student loan payments resume, including long call hold times, misinformation, and processing errors.