Borrowers with MOHELA to Use New Servicing Website

MOHELA Website Relocating

Student loan servicer MOHELA is updating its servicing platform and borrowers will need to follow suit. In a statement released by the company, they outline that the swap will take place over “the coming months,” but provide surprisingly few details as to how long they expect the transition to take, or even as to why the change is being made. If borrowers are already serviced by MOHELA, they can expect to receive notice that their accounts have been moved, at which point they will need to create a new profile at the new website:

What Does MOHELA’s Move Mean for Borrowers?

Although neither MOHELA nor Federal Student Aid have given a reason for the rebranding (as of this writing), it likely signals that the former isn’t intending to jump ship anytime soon. In fact, MOHELA has grown from little-known region-specific servicer to one of the largest in the country in just a few short years. The company’s switch to a new website, tied to FSA’s domain, may signal that it intends to work more closely with the federal government than it has in the past. Such a change would likely be a welcome change to borrowers, following lackluster service from MOHELA after the end of the Covid-19 emergency forbearance. It remains unclear, however, whether they will be able to effect their platform update in a timely fashion, especially given that they’ve announced no timetable for its completion. As MOHELA absorbs borrowers from Navient, which is outsourcing the last of its servicing operation, it stands to reason that there could be delays in implementation. 

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