Student loan payment restart has been marred by errors, from late notices to incorrect bills

The first month of repayments since the end of a three-year pandemic pause on federal student loans has been filled with mishaps, including incorrect billing amounts and late notices for bills coming due, according to government officials.

Among the issues: 830,000 people missed their first payment since the pause was lifted after a loan servicer failed to send out timely notices to 2.5 million borrowers, the U.S. Department of Education said on Monday.

Some people received their bills just seven days before payment was due, despite the Education Department requiring at least 21 days' notice. MOHELA, one of the nation's largest student loan servicers, was responsible for the delayed billing notices and the Department of Education withheld $7.3 million in revenue to MOHELA as a consequence, the department said. (MOHELA did not respond to a request for comment.)