Millions of student-loan borrowers' payments are being 'wildly' mismanaged by a major servicer - and it might be time to terminate its contract, over 50 Democratic lawmakers say

On Monday, Sen. Elizabeth Warren and Rep. Jim Clyburn led over 50 of their Democratic colleagues in sending a letter to Education Secretary Miguel Cardona regarding the performance of student-loan company MOHELA.

The lawmakers said they were concerned MOHELA was failing to meet its contractual obligations regarding delivering accurate and timely information to borrowers regarding their payments.

Given the lawsuits' accusations of MOHELA's billing errors, poor customer service record, and decisions to avoid public and private accountability at every turn, we request that ED immediately conduct an evaluation of MOHELA's fulfillment of its contractual obligations.

A MOHELA spokesperson previously stated that providing support to student loan borrowers is the utmost priority to MOHELA, and any claims to the contrary are false.

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