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Finance & Wealth
Aug 29, 20260 views2 min read

Senators Open Investigation Into MOHELA Over False Student Loan Delinquency Notices

A group of U.S. senators led by Elizabeth Warren and Jeff Merkley launched a formal investigation into student loan servicer MOHELA on August 27 after thousands of borrowers received false notices claiming their loans were severely past due. About 6,000 borrowers were confirmed affected. Many were in administrative forbearance and owed nothing at the time.

Senators Open Investigation Into MOHELA Over False Student Loan Delinquency Notices
Source:Forbes

A group of U.S. senators launched a formal investigation into student loan servicer MOHELA on August 27, 2026, after thousands of borrowers received false notices claiming their loans were severely past due or nearing default.

Senators Elizabeth Warren, Jeff Merkley, Bernie Sanders, and several colleagues sent a letter demanding answers from MOHELA by September 10. The senators said the false notices could cause direct financial harm if borrowers made unnecessary payments on amounts they did not actually owe.

The Department of Education confirmed that approximately 6,000 borrowers were affected by the error. Many of those who received the notices were in administrative forbearance, particularly borrowers transitioning off the SAVE repayment plan, and were not required to make any payments.

Borrowers reported that their dashboards on StudentAid.gov correctly showed an in-forbearance or zero-dollar-due status, while the MOHELA portal simultaneously displayed false past-due balances, in some cases exceeding $10,000, and claimed borrowers were up to 12 months behind.

The senators linked the error to a broader pattern of problems at MOHELA, which has previously faced criticism and penalties for failing to send timely billing statements and incorrectly reporting loan data. They also cited a Government Accountability Office report from early 2026 finding that the Department of Education's Federal Student Aid office had stopped direct assessments of servicer accuracy due to staffing limitations.

Advocates advised affected borrowers to document everything with screenshots, dispute the error in writing through the MOHELA portal, avoid making payments on the false past-due amounts, and file complaints with the FSA Ombudsman and the Consumer Financial Protection Bureau if the issue is not resolved.

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