{"id":82755,"date":"2024-01-10T18:11:38","date_gmt":"2024-01-10T18:11:38","guid":{"rendered":"https:\/\/cred.ai\/news\/?p=82755"},"modified":"2024-04-25T03:07:02","modified_gmt":"2024-04-25T03:07:02","slug":"student-loan-borrowers-to-receive-credit-for-servicer-failures","status":"publish","type":"post","link":"https:\/\/cred.ai\/news\/2024\/01\/10\/student-loan-borrowers-to-receive-credit-for-servicer-failures\/","title":{"rendered":"Student Loan Borrowers to Receive Credit for Servicer Failures"},"content":{"rendered":"<p class=\"p1\">Millions of American student loan borrowers are set to benefit from a recent decision by the Department of Education. Due to lapses by three major loan servicers \u2013 Aidvantage, EdFinancial, and Nelnet \u2013 in sending timely billing statements and meeting contractual obligations, over 3.5 million people will now receive credit for their payments.<\/p>\n<p class=\"p1\">The Department of Education has placed effected loans in administrative forbearance. During this period, borrowers are not required to make payments. Moreover, any accruing interest will effectively be nullified. This measure aims to alleviate the burden on borrowers while servicer issues are resolved.<\/p>\n<blockquote><p>\u201cWhen unacceptable errors are uncovered, servicers should expect to be held accountable and borrowers should count on this administration to hold them harmless,\u201d Secretary of Education Miguel Cardona said in a <a href=\"https:\/\/www.ed.gov\/news\/press-releases\/biden-harris-administration-takes-additional-action-hold-student-loan-servicers-accountable-failing-meet-contractual-obligations\">statement<\/a>.<\/p><\/blockquote>\n<p class=\"p1\">Financially, the consequences for the servicers are significant. Aidvantage faces a withholding of $2 million in repayments, while EdFinancial and Nelnet are accountable for $161,000 and $13,000, respectively. These figures are calculated based on the number of affected borrowers.<\/p>\n<p class=\"p1\">Additionally, this forbearance period will count towards qualifying periods for loan forgiveness programs, such as Public Service Loan Forgiveness and income-driven repayment plans. This decision is a positive turn for borrowers, many of whom have faced ongoing challenges with loan servicing, especially post-Covid-19 forbearance, which had suspended payments and interest accrual on federal student loans since March 2020.<\/p>\n<p class=\"p1\">The resumption of repayments last September was fraught with issues, including delayed billing statements and incorrect payment calculations, as highlighted by The <a href=\"https:\/\/www.nytimes.com\/2024\/01\/05\/business\/student-loans-payment-mistakes.html\"><span class=\"s1\">New York Times<\/span><\/a>. This latest development offers some relief and progress for those navigating the complexities of student loan repayment.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Millions of American student loan borrowers are set to benefit from a recent decision by the Department of Education. Due to lapses by three major loan servicers \u2013 Aidvantage, EdFinancial, and Nelnet \u2013 in sending timely billing statements and meeting contractual obligations, over 3.5 million people will now receive credit for their payments. The Department &#8230;<\/p>\n","protected":false},"author":14,"featured_media":82759,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[109],"tags":[949,970],"class_list":["post-82755","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-student-loans","tag-servicer-failure"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.3 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Student Loan Borrowers to Receive Credit for Servicer Failures - crednews<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cred.ai\/news\/2024\/01\/10\/student-loan-borrowers-to-receive-credit-for-servicer-failures\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Student Loan Borrowers to Receive Credit for Servicer Failures\" \/>\n<meta property=\"og:description\" content=\"Millions of American student loan borrowers are set to benefit from a recent decision by the Department of Education. Due to lapses by three major loan servicers \u2013 Aidvantage, EdFinancial, and Nelnet \u2013 in sending timely billing statements and meeting contractual obligations, over 3.5 million people will now receive credit for their payments. The Department ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cred.ai\/news\/2024\/01\/10\/student-loan-borrowers-to-receive-credit-for-servicer-failures\/\" \/>\n<meta property=\"og:site_name\" content=\"crednews\" \/>\n<meta property=\"article:published_time\" content=\"2024-01-10T18:11:38+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-04-25T03:07:02+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cred.ai\/news\/wp-content\/uploads\/2024\/01\/joshua-hoehne-iggWDxHTAUQ-unsplash-scaled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2048\" \/>\n\t<meta property=\"og:image:height\" content=\"1365\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cred.ai staff\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cred.ai staff\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/cred.ai\\\/news\\\/2024\\\/01\\\/10\\\/student-loan-borrowers-to-receive-credit-for-servicer-failures\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/cred.ai\\\/news\\\/2024\\\/01\\\/10\\\/student-loan-borrowers-to-receive-credit-for-servicer-failures\\\/\"},\"author\":{\"name\":\"cred.ai staff\",\"@id\":\"https:\\\/\\\/cred.ai\\\/news\\\/#\\\/schema\\\/person\\\/b8132cf694e343ab4c8bd8a3da99e9c2\"},\"headline\":\"Student Loan Borrowers to Receive Credit for Servicer Failures\",\"datePublished\":\"2024-01-10T18:11:38+00:00\",\"dateModified\":\"2024-04-25T03:07:02+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/cred.ai\\\/news\\\/2024\\\/01\\\/10\\\/student-loan-borrowers-to-receive-credit-for-servicer-failures\\\/\"},\"wordCount\":269,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/cred.ai\\\/news\\\/2024\\\/01\\\/10\\\/student-loan-borrowers-to-receive-credit-for-servicer-failures\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/cred.ai\\\/news\\\/wp-content\\\/uploads\\\/2024\\\/01\\\/joshua-hoehne-iggWDxHTAUQ-unsplash-scaled.jpg\",\"keywords\":[\"student loans\",\"servicer failure\"],\"articleSection\":[\"Finance\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/cred.ai\\\/news\\\/2024\\\/01\\\/10\\\/student-loan-borrowers-to-receive-credit-for-servicer-failures\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/cred.ai\\\/news\\\/2024\\\/01\\\/10\\\/student-loan-borrowers-to-receive-credit-for-servicer-failures\\\/\",\"url\":\"https:\\\/\\\/cred.ai\\\/news\\\/2024\\\/01\\\/10\\\/student-loan-borrowers-to-receive-credit-for-servicer-failures\\\/\",\"name\":\"Student Loan Borrowers to Receive Credit for Servicer Failures - 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