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.
Starting May 1, 2024, you can continue to submit your PSLF forms, but they will be put on hold and not processed until July.
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.
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.
Typically it takes at least 2 months to process PSLF Forms. During the busiest PSLF Waiver periods, estimates were between four and six months. If you're still within those time periods, continue waiting. You can always go to the My Activity page on studentaid.gov to check the status.
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.
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.
As of July 2024, the PSLF Program is now fully managed by the Department via StudentAid.gov, rather than by a single loan servicer, making it easier for borrowers to track their progress toward forgiveness.
Online: 2-4 business days from the payment processing date to post. However, the payment will be effective the date your payment was scheduled. Phone: 2-4 business days from the payment processing date to post. However, the payment will be effective the date your payment was scheduled.
As of July 1, 2024, the PSLF program has successfully transitioned from MOHELA and now is fully managed by ED on StudentAid.gov. For all inquiries surrounding your PSLF discharge and any associated refunds, visit StudentAid.gov.
The Supreme Court ruled we could not implement pandemic-related student loan debt relief, so we can't use your application from 2022. The new proposed regulations are different, and we're currently working to finalize their terms, including who may receive loan forgiveness.
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.
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.
From July 1, 2022, through April 30, 2024, MOHELA served as the interim PSLF servicer and processed the largest amount of forgiveness—nearly $55 billion for 737,000 individual borrowers—by an FSA contractor in the history of the program.
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.
How long does it take for MOHELA to respond to PSLF? 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.
Required Commitment and Lengthy Duration
One of the notable drawbacks of PSLF for doctors is the required commitment. To be eligible for forgiveness, you must make 120 qualifying payments, which essentially means 10 years of service in a qualifying organization.
Does MOHELA report to credit bureaus? Yes, all federal student loan servicers, including MOHELA, report their borrowers' credit history to the major credit bureaus (Equifax, Transunion, and Experian). MOHELA could report any late payment to the bureaus, but reporting is required for delinquencies of at least 90 days.
If your military service qualifies for a military-related deferment or forbearance, we suggest that you take advantage of that deferment or forbearance as that time will count as payments toward PSLF.
Navient served as a federal student loans servicer in the past, but it has faced legal allegations of loan mismanagement in recent years. The company stopped servicing most federal student loans in December 2021. In July 2024, Navient began transferring its remaining student loan servicing portfolio to MOHELA.
According to StudentAid.gov, PSLF processing times depend on: Whether you previously submitted employment documentation for review versus submitting documentation all at once when you apply for loan forgiveness. The number of qualifying employers you've had. If you have gaps in your employment or payment history.
In October 2023, the administration withheld $7.2 million from MOHELA for failing to send timely billing statements to 2.5 million borrowers. The Education Department in January took similar action against other federal servicers — Aidvantage, Edfinancial and Nelnet — for billing delays.
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.