The U.S. Department of Education will penalize student loan servicer Mohela, or the Missouri Higher Education Loan Authority, for its failure to send timely billing statements to 2.5 million borrowers.
As a result of Mohela’s errors, more than 800,000 borrowers were delinquent on their loans, the Education Department said in a statement Monday.
The department is withholding $7.2 million in payment to Mohela for October and has directed the servicer to place all affected borrowers in forbearance until the issue is fully resolved, it said.
I sent them a message in their online portal at the beginning of September and have yet to receive a response. Looking at my loan payments it seems like the interest is being calculated at 30%. Is that correct? Seems high, but I’m not sure. If that is true I would be better off getting a personal loan at a lower rate and paying that off.
Edit: I just looked. It should be closer to 3-4%. I think I’m going to have to call them. I’ll do some math first to make sure since it’s 4 different disbursements so maybe they are correct? IDK.