More than 300,000 people were given incorrect information about their student loan repayments as resumption of debt payments began this month, the Education Department said on Thursday.
The agency has directed servicers to alert affected borrowers and place them into administrative forbearance until their correct payment amount is calculated in order to minimize the impact on them, the Education Department told CBS MoneyWatch.
The issue is affecting some borrowers in the new income-driven repayment plan from the Biden administration, called the SAVE plan, including some that should have had $0 owed under the new structure, the agency said. The mistake adds to some of the problems facing borrowers this month as their payments are due for the first time in more than three years, including customer service issues with their loan servicers.