Biden administration cuts pay for student loan servicers after a bungled return to repayment

The Biden administration is docking more than $2 million in payments to student loan servicers that failed to send billing statements on time after the end of a pandemic payment freeze. The Education Department said Friday it will withhold payments from Aidvantage, EdFinancial and Nelnet for failing to meet their contractual obligations. The servicers failed to send timely statements to more than 750,000 borrowers in the first month of repayment. Education Secretary Miguel Cardona says his agency will continue to pursue “aggressive oversight." It’s the latest attempt to straighten out a process that has been marred by errors after student loan payments restarted in October.