• AutoTL;DR@lemmings.worldB
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    9 months ago

    This is the best summary I could come up with:


    Now that the federal student loan machinery has been set back into motion, hundreds of thousands of borrowers are discovering that their monthly payments had been miscalculated, often for higher amounts than they actually owed.

    The Education Department also said it noticed discrepancies in some payment amounts as part of its standard review process last month, which led it to ask the loan servicers to audit their files regarding calculations made to family size, income or marital status.

    After it noticed the issues, the Education Department said, it immediately directed loan servicers to notify affected borrowers and put them into administrative forbearance until they were able to calculate the correct payment amounts.

    People who want to ensure the accuracy of their payment amounts can use the loan simulator tool at StudentAid.gov, which should generate a close approximation of what they owe, but any discrepancies may take some time and perseverance to get fixed.

    “Unfortunately, the bigger issue is that it’s hard to get those problems resolved right now if you can’t get someone on the phone,” said Persis Yu, deputy executive director at the Student Borrower Protection Center, referring to the notoriously long wait times for loan servicer representatives.

    “When you make big changes in the midst of resumption — including transferring people into a new repayment program that is far more complicated than the last one — there will be challenges and pockets of borrowers where we have to do manual work,” Mr. Buchanan said.


    The original article contains 679 words, the summary contains 246 words. Saved 64%. I’m a bot and I’m open source!

  • meyotch@slrpnk.net
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    9 months ago

    Exactly what is it the feds are paying these chuckleheads for? The dept of ed knows the terms of the loans best, they know what I would actually owe. What value is it the ‘loan servicers’ actually add? The government is well equipped to take payments directly.