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.
Grace Periods. One of the most common reasons you might have a $0 monthly student loan payment right now is because you're in something called your grace period. This is generally the six-month period after you leave college when no loan payments are required. It can take a minute to get used to life after college.
It's because of processing delays on MOHELA's end. If you submitted an application to recalculate payments under the new income-driven repayment program, you may receive a forbearance letter. The forbearance will be lifted when the application is processed and the amount of your new payment is assessed.
Earlier today, the Education Department announced it was pulling the Public Service Loan Forgiveness Program from MOHELA and moving it to the Federal Student Aid Office. Right now, the only details we have are an email and a blog post. More information will come out over the next several weeks about what this means a.
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.
Your student loan servicer(s) will notify you directly after your forgiveness is processed. Make sure to keep your contact information up to date on StudentAid.gov and with your servicer(s). If you haven't yet qualified for forgiveness, you'll be able to see your exact payment counts in the future.
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.
You don't get reported when you're in forbearance. During the on-ramp period (through Sept. 30, 2024), we automatically put your loan in a forbearance for the payments you missed. Here's what this means: Your account was no longer considered delinquent and was made current.
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.
If your loans were eligible, we automatically paused your loan payments and set your interest rate to 0% from March 13, 2020, until Sept. 1, 2023. This payment pause is also known as an administrative forbearance. You can no longer get refunds for payments you made during the COVID-19 payment pause.
Yes. Any month when your scheduled payment under an income-driven plan is $0 will count toward Public Service Loan Forgiveness if you also are employed full-time by a qualifying employer during that month.
You were either enrolled in the SAVE Plan or about to have your payments lowered under it. A federal court recently blocked the implementation of the SAVE Plan. To comply with the court order and prevent incorrect billing, the Education Department directed MOHELA to place affected borrowers into forbearance.
When you are enrolled less than half time at your school, you will enter your six-month grace period (for Subsidized and Unsubsidized Direct Loans) when you should prepare to start making payments.
If your account is past due, your payment status, including late and missed payments, as well as default, may be reported. Late or missed payments or defaults reflected on your consumer credit report may adversely affect your consumer credit rating.
If your federal student loans are forgiven, you could get a refund, and you might see your credit score dip.
Private and federal loans will remain on your credit report no matter which student loan repayment plan you're in or whether you're in deferment or forbearance. The accounts will remain there until you pay them off, they go away, or they fall off after you've been in default for 7.5 years.
A processing pause began on May 1, 2024, for the Public Service Loan Forgiveness (PSLF) Program as we update and streamline our systems for a better user experience.
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.
Borrowers should continue making their payments as required during the transition period. Unless a borrower requests a forbearance while their forgiveness application is being processed, they will still be required to make payments until their application is reviewed and approved.
MOHELA is a company that services federal student loans by collecting and tracking payments. Also called the Higher Education Loan Authority of the State of Missouri, it's a nonprofit servicer that manages both federal and private student loans.
After at least 20 years of student loan payments under an income-driven repayment plan — IDR forgiveness and 20-year student loan forgiveness. After 25 years if you borrowed loans for graduate school — 25-year federal loan forgiveness.
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.