October marked the start of a return to federal student loan payments for more than 28 million borrowers after a three-and-a-half-year hiatus during the pandemic. Only two months in, Mohela (the Missouri Higher Education Loan Authority) has stood out among federal loan servicers for administrative errors, including sending late bills and withdrawing incorrect auto-debits, according to complaints and interviews. Facing notoriously long wait times from agents, some borrowers have turned to subreddits and Facebook groups to seek advice about how to resolve issues with their accounts.
When Veronica Newsom checked her balance in October, she was shocked to discover more than $600 had been automatically debited from her bank account for a student loan payment. After applying for an income-based repayment plan in late summer, the Seattle-based therapist had expected the amount to be less than $200.
