If you are sending your payment by mail, the payment will have an effective date in your payment history for the day the payment was received. Please keep in mind that mailed payments are only processed on business days, and can take an additional two business days to be applied to your account.
Why hasn't my payment posted yet? If you made a federal student loan payment directly to MOHELA, which was not posted to your loan(s) prior to the transition, these payments may be delayed by up to 60-90 days. However, we will post the payment to your loan(s) with the effective date that the payment was made.
Loans serviced by MOHELA? If you faxed or mailed your PSLF form to MOHELA it may take up to 14 days for your mohela.com account to note that the form was received. Please allow at least 90 business days for your form to be processed.
Payment Processing:
When making a payment, it can take up to two business days to be applied to your account. For Auto Debit payments, they will be applied using your due date as the effective date. For all other payments, the effective date is the date you selected when scheduling your payment.
MOHELA processes payments and documents sent over from your prior federal student loan servicer. Everything is generally processed within 30 business days. Payments will be made effective as of the date your prior servicer received the payment.
Once approved, it typically takes 1-2 weeks to receive the funds, though some cases may take longer, depending on your school and the specific loan you choose.
Processing times will vary depending on factors such as whether you previously submitted documentation of employment for review or submitted documentation only at the time you applied for loan forgiveness, the number of your employers, any gaps in your employment or payment history, and any required follow-up.
Keep track of how many payments you've made toward Public Service Loan Forgiveness when you log into your StudentAid.gov Dashboard. You can also see how many qualifying payments you've made by logging into your MOHELA account.
Any borrowers with loans that have accumulated eligible time in repayment of at least 20 or 25 years will see automatic forgiveness, even if they are not currently on an IDR plan.
In July 2024, AFT sued MOHELA for a wide range of unlawful practices, including illegally executing a “call deflection” scheme to deny service to borrowers who need help.
IDR plans may offer lower payments because they are based on your income and family size. Payments can be as low as $0 per month, depending on your circumstances.
If you work in certain public service jobs and have made 120 payments on your Direct Loans, you may be eligible to have your loans forgiven. If some or all of your payments were not made on a qualifying repayment plan for PSLF, you may be able to receive loan forgiveness under a temporary opportunity.
Loan Type and Lender Policies: different lenders may have different policies and processing times for loans. Time of Year: loan processing times may be longer during peak application periods, such as before the start of a new school year.
Apart from recent FAFSA delays, the thing not all borrowers realize is that most student loans aren't disbursed immediately after they're approved. Normally, federal student loans are disbursed a few days before the start of the semester.
MOHELA takes up to 14 days to acknowledge receipt of your PSLF form and at least 90 business days to process it. Factors like loan transfers and application volume can extend this period. MOHELA acknowledges PSLF form receipt within 14 days and processes forms in at least 90 business days.
In October 2023, the U.S. Department of Education disclosed that MOHELA failed to send monthly student loan bills to 2.5 million borrowers, resulting in 800,000 borrowers missing a monthly payment.
If you meet the requirements for forgiveness, you'll first receive a notification from the U.S. Department of Education indicating you have been approved for PSLF.
59% of denied applications were rejected due to too few qualifying payments. 26% of denied applications were due to missing information. As of November 2020, $118.5 billion was the total outstanding balance of borrowers eligible for PSLF.
A final review of your account will be done to process forgiveness, which will take at least 90 business days. You're required to continue making payments while your form is being processed, unless your account is in a forbearance status.
You can now see your progress toward PSLF on the My Aid section of your Dashboard when you log in to StudentAid.gov using your StudentAid.gov account username and password combination (sometimes called an FSA ID). The display will show your loan details, payment history (for PSLF months), and employment certification.
You should allow 2 weeks until funds are disbursed on approved loans, but it can take less or more time in some cases. Remember, once the process is completed, you should continue to make payments to your previous lenders up until you have confirmed that your previous loans are paid in full.
To check the status of your PLUS loan application, contact the Federal Student Aid Information Center at 1-800-433-3243, or initiate a chat on StudentAid.gov. Was this page helpful? When will I receive my financial aid?
The standard student loan payoff time for federal student loans is 10 years. However, repayment time depends on the loan amount and how much you can pay a month. A bachelor's degree-holder with the average amount of federal loan debt would need to pay just over $300 a month to pay off their loan within 10 years.