Are Your Student Loans Switched to MOHELA?
Student Loan Servicers and PSLF
Almost exactly one year ago, FedLoan (and its parent company, PHEAA) announced that it would be exiting the federal student loan business, leaving millions of borrowers—especially those pursuing Public Service Loan Forgiveness—in the lurch. While there are many student loan servicers, including those that manage the federal loan program, FedLoan was the one and only for anyone on the PSLF track.
That meant not only would a new servicer have to be found for all those borrowers, the complex forgiveness program—which already had a poor track record of success—could suffer from unforeseen strain.
MOHELA to the Rescue!
As FedLoan announced its departure, many worried that PSLF data could either be lost or further complicated by the transition, but borrowers could give a sigh of relief after MOHELA was announced as their replacement. Like other servicers, PHEAA has proprietary software it uses to track its customers’ student loans. MOHELA, thankfully, already had a contract with them to share the use of their software, making them an ideal candidate to take over FedLoans’ clients. Borrowers will be able to enjoy a smooth transition between companies with a minimum of effort.
Have You Moved to MOHELA Yet?
If you are pursuing PSLF, your loans will be switching over to MOHELA shortly—if they haven’t already! The transition period has already begun and will be complete by September 30th. You don’t have to do anything to make it happen, the Department of Education will notify you before your loans are transferred, then MOHELA will let you know when it’s done and you can set up an account with them to manage your loans online. You may not be able to access your loan information during the transfer process, so do anything you need to before that starts. If you need to submit a PSLF Form, you can continue to submit them to FedLoan until your loans are transferred to MOHELA.
Have questions? Not sure how the change will impact your particular situation? We’ve got answers! We’re always just a call or email away.
If you’re pursuing Public Service Loan Forgiveness and you haven’t met with us yet, schedule your free 15-minute Discovery Session to find out if you qualify for PSLF, or what you can do if you don’t.