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.
On 05/23/2024, MOHELA will be transitioning your account to our new student loan servicing platform. This transition will allow us to explore new options with your customer service experience. MOHELA will still service your loans after the internal transition is complete.
ED is transferring your loan account to EdFinancial as part of an initiative to keep customer service and repayment support balanced across all federal loan servicers. This change in servicer will not impact the existing terms, conditions, interest rate, or available repayment plans of your federal student loans.
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.
What types of student loans does MOHELA service? MOHELA services federal student loans, including all loans being paid off with the Public Service Loan Forgiveness (PSLF) program. MOHELA is also the loan servicer for some private student loan companies, like SoFi and Laurel Road.
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.
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.
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.
Why do loans get switched or transferred to a different servicer? Sometimes, we need to transfer loans from one servicer to another—for example, when a servicer's contract with us ends. Even if we transfer your loans to a new servicer, we (the U.S. Department of Education) still own your loans.
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.
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.
MOHELA is SoFi's third-party loan servicer for student loans. Once your loan is funded, servicing will be provided by our partner MOHELA, who will contact you to set up an account and collect your monthly payments.
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.
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.
MOHELA makes money from its contract with the federal government, which pays the servicer a monthly amount for each student loan borrower they are servicing. The amount it gets paid for servicing a loan can vary depending on the status of the loan, whether a student is still in school or a borrower is in delinquency.
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.
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).
There will be a pause in processing for all PSLF forms while we transition the program to ED. Beginning on May 1, 2024, you are no longer able to access your PSLF progress, certified employment, or payment counts on MOHELA's borrower portal.
Student loans disappear from credit reports 7.5 years from the date they are paid in full, charged-off, or entered default. However, education debt can reappear if you dig out of default with consolidation or loan rehabilitation. Student loans can have an outsized impact on your credit score.
Your loans were not sold. ED will continue to own your loans; however, MOHELA will manage your loans and assist you on ED's behalf as your federal student loan servicer.
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.
Are student loans forgiven when you retire? No, the federal government doesn't forgive student loans at age 50, 65, or when borrowers retire and start drawing Social Security benefits. So, for example, you'll still owe Parent PLUS Loans, FFEL Loans, and Direct Loans after you retire.
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.