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Education Department withholds $2.2M from 3 student loan servicers

January 5, 2024

Via: Higher Ed Dive

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For over three years, the federal government paused monthly student loan payments and interest accrual, citing the COVID-19 pandemic. Since payments restarted in October, many customers have said they faced administrative challenges and received little communication from loan service providers.

The Education Department announced in October that it was withholding a $7.2 million payment from the Missouri Higher Education Loan Authority over similar billing issues.

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