Loan servicer’s error hits 5M borrower credit reports – Politico
STUDENT LOAN SERVICER ERROR HITS 5M BORROWER CREDIT REPORTS: Nearly 5 million student loan borrowers who got a break on their monthly payments under the economic rescue law, H.R. 748 (116), have been hit with incorrect information on their credit reports, which lowered their credit scores in some cases.
— The Trump administration has been rushing to fix the errors made by Great Lakes Educational Loan Services, which the federal government hired to collect and manage student loans. Great Lakes provided incorrect information about approximately 4.8 million federal student loan borrowers to credit bureaus like Equifax, Experian and TransUnion, Education Department officials confirmed to POLITICO on Wednesday.
— The problem affected borrowers with federally held student loans who were automatically granted a six-month pause on their payments under the CARES Act. The law required the Education Department to make sure that suspended payments were reported to credit bureaus as regular, on-time payments. But that didn’t happen to most federal student loans serviced by Great Lakes.