MOHELA mistakenly sent past-due alerts to a handful of student loan borrowers

A small group of borrowers serviced by MOHELA received erroneous past-due notices, which the Education Department says have been corrected and will be followed up with email apologies.

Over the past several days, a limited number of borrowers with loans managed by MOHELA were incorrectly notified that their accounts were past due and at risk of default. The Education Department acknowledged the problem, stating that it has been fixed and that the impacted borrowers will be contacted via email to explain the error. This mistake coincides with the implementation of President Donald Trump's student-loan repayment overhaul, which took effect on July 1 and introduced new repayment options while moving borrowers off the previous SAVE plan.

Since the changes, borrowers have reported higher monthly payments and a series of administrative issues, including a recent incident where 6,000 borrowers were asked to reapply for income-driven repayment after receiving an incorrect payment amount. A March GAO report highlighted that the Federal Student Aid office had halted billing accuracy assessments due to staffing cuts. The department reiterated its commitment to delivering high-quality customer service to loan holders.