Federal student loan servicers handle your federal student loans on behalf of the U.S. Department of Education. The biggest loan servicers are MOHELA, Aidvantage and Nelnet. Your loan servicer might have changed during the payment pause. Find out who your loan servicer is by logging in to your student loan account.
The reason behind this is to uphold a recent law that cuts out all banks and private lenders from the federal student loan industry. This law is part of a reform that is attempting to keep private business out of student loans, and thereby reduce costs, errors, and instances of fraud.
You repay your Direct Loan(s) to the U.S. Department of Education via a Servicer they assign to you. Before you take out a loan, it's important to understand that a loan is a legal obligation that you will be responsible for repaying with interest.
Welcome to MOHELA. If you recently received notification from your current federal student loan servicer that your loans will be transferring to MOHELA, welcome to MOHELA! Please refer to the following transfer information. You can also find general information about how loan transfers work from Federal Student Aid.
As part of its long-term vision for a new online environment for borrowers, the U.S. Department of Education (ED) will begin transitioning the servicing of the PSLF Program and the TEACH Grant Program from its sole interim PSLF servicer, MOHELA, to ED via StudentAid.gov beginning May 1, 2024.
Since 2021, MOHELA has more than tripled its portfolio of Department of Education (ED)-held federal loans. At the same time, MOHELA continues to serve as the exclusive loan servicer for private student loans made by banks like SoFi and KeyBank (d/b/a Laurel Road).
Federal student loans are owned by the U.S. Department of Education while private student loans are owned by the financial institution that granted them. Learn more how who owns student loans and how to find out who owns your student loan.
After the decision, FedLoan accounts were transferred to MOHELA, Edfinancial, Aidvantage and Nelnet. Borrowers can contact the Federal Student Aid Information Center if they need assistance with their loan accounts or have trouble contacting their new servicer.
FSA, an office of the U.S. Department of Education (ED), is the largest provider of student financial aid in the nation. At FSA, our more than 1,400 employees help make postsecondary education possible for more than 9.9 million students each year.
Teachers with loans through Nelnet can pursue teacher loan forgiveness. Teachers may qualify to have a maximum of $17,500 or $5,000 in student loans forgiven, depending on the subject area taught, if specific requirements are met.
If your student loan balance is suddenly showing zero, some of the many reasons could be: Your federal student aid or private student loans were forgiven. You've completed one of the student loan forgiveness programs. You qualify for Public Service Loan Forgiveness (PSLF), or.
In the case of Nelnet, Massachusetts Attorney General Andrea Campbell (D) said the company neglected to tell borrowers to resubmit their earnings and family size to remain enrolled in an income-driven repayment plan.
Whoever gave you the money for your education (the lender) is usually who owns your student loan. This is either the federal government or a private company. But your loan servicer is who handles the loan repayment—and who dishes out the consequences if you don't pay up.
Nelnet is a federal student loan servicer working on behalf of the U.S. Department of Education (ED), the government agency that lends you student loans.
MOHELA. The Higher Education Loan Authority of the State of Missouri (MOHELA) is the first nonprofit federal student loan servicer to make it onto our list, narrowly squeaking ahead of Nelnet. Here's why. The more complexity a servicer is asked to deal with, the more likely they are to mess up.
On July 1, federal loan servicing for the U.S. Department of Education's PSLF program began transitioning to MOHELA from FedLoan Servicing. Due to the unprecedented interest in the limited PSLF waiver we are currently experiencing longer processing times for PSLF forms.
MOHELA has announced that it will be transitioning to a new loan servicing platform in order to better serve borrowers with federal student loans. If you are a borrower who has loans currently serviced by MOHELA, your loans are not being transferred or sold.
If you had loans serviced by PHEAA (FedLoan)
The contract officially ended on Dec. 14, 2021. The company managed loans for 8.5 million borrowers. PHEAA and the Department of Education transferred most borrowers to MOHELA, but some borrowers may have been transferred to a different servicer.
Your interest charges will be added to the amount you owe, causing your loan to grow over time. This can occur if you are in a deferment for an unsubsidized loan or if you have an income-based repayment (IBR) plan and your payments are not large enough to cover the monthly accruing interest.
The office of Federal Student Aid is responsible for directly managing or overseeing an outstanding federal student loan portfolio comprised of billions of dollars in Title IV loans and representing millions of borrowers.
The Education Department has put all SAVE borrowers into an administrative forbearance through at least April 2025, as it continues to defend the SAVE plan in court. Upcoming payments won't be due, even if you receive a bill.
If you work in certain public service jobs and make 120 payments on your Direct Loan(s), you may be eligible to have your loans forgiven. If you are a teacher in a low-income school or educational service agency, you may be eligible for Teacher Loan Forgiveness.
Sallie Mae is not a federal loan servicer.
When Sallie Mae first formed, it was a government-sponsored enterprise servicing federal student loans — or loans made by the government. But in 2014, it split into two separate companies.
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.