300,000 plus student loan borrowers in the US are facing wrong repayment information

Meanwhile, the correct payment amount will be calculated in the case of those affected.

Student loan borrowers in the US, numbering more than 300,000 have been given wrong repayment information, the Education Department informed on Thursday. Notably, borrowers have started making federal student loan payments in October after it was paused for more than three years because of the pandemic.

Borrowers have started making federal student loan payments in October after it was paused for more than three years because of the pandemic. (AP)

According to a report by CBS News, the Education Department has ordered servicers to inform the affected borrowers. Meanwhile, the correct payment amount will be calculated in the case of those affected. The report says that wrong information has been provided to less than 1% of the 28 million borrowers who are reentering repayment this month.

"Because of the Department's stringent oversight efforts and ability to quickly catch these errors, servicers are being held accountable and borrowers will not have payments due until these mistakes are fixed," said the Education Department.

Notably, student loan payments have resumed in the US under the new income-driven repayment plan called the SAVE plan. The full form of SAVE is Saving on a Valuable Education. It was believed that under SAVE, some monthly payments may come out to be as small as $0.

Student loan borrowers have also been facing customer service issues with their loan servicers. They are having to deal with dropped calls and long wait times while looking for answers and resolution from their servicers. The wrong repayment information issue adds to their plight.

Braxton Brewington of the Debt Collective, an advocacy group for people with student debt, highlighted the problems being faced by the borrowers.

"We've seen a lot of confusion and a lot of huge gaps from the servicers and the Department of Education. People are getting billed the wrong amounts, so when they have the problems they aren't able to reach their servicer," said Brewington.