The 5 Wildest Student Loan Repayment Errors Derailing Forgiveness Right Now

Student loan borrowers are encountering a wide array of problems as payments start up again after a three-and-a-half year pause. Billing mistakes, forced forbearances, and other issues are interfering with loan repayment and derailing those who are pursuing student loan forgiveness.

The issues stem from the unprecedented, simultaneous return to repayment by 40 million borrowers, and an unprepared and underfunded loan servicing system that is buckling under the pressure while trying to implement multiple new student debt relief initiatives. The Biden administration is stepping up oversight and enforcement efforts. Last week, the Education Department issued a financial penalty to a loan servicing company, as well as compensation for borrowers harmed by the student loan repayment errors.