Because of this transition, there will be a delay processing PSLF applications and borrowers between May 1–July 1, 2024. Throughout this transition, borrowers will also not be able to access any of their PSLF records on either studentaid.gov or MOHELA’s website. FSA recommends that you “save screenshots and correspondence for your personal records…by April 30, 2024.”
If you have any questions about PSLF, employment certification, or whether you may qualify, contact your student loan professional. They can help put you on the path to loan forgiveness and give you peace of mind so that you can enjoy the beauty and promise of springtime!
Since we deal with MOHELA on a regular basis, none of this is really surprising to us. We’ve been right there with clients who’ve been on hold for hours, listening to their dreadful hold music, navigating obtuse phone trees, and explaining policy to service representatives that are either uninformed or intentionally misdirecting.
If you were among those notified that you needed to recertify your income, you don’t actually need to do anything. The Department of Education has extended the recertification deadline until November 1, 2024 and the earliest that borrowers should need to submit anything will be September 2024.
If you have questions about how these proposed regulations may affect you and your path to student loan freedom, give your student loan professional a call. We’ll continue to wade through the legalese and keep you up-to-date on all updates and reforms to student loans!
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: mohela.studentaid.gov.
If you’re one of millions of borrowers with student loans owned by Navient, you’ll soon be getting a new servicer: MOHELA. Navient—which used to be one of the very largest loan servicers—continues to disinvest from its student loan business after transferring out all of its federal student loans just a couple of years ago.
This newest plan touts a lot of benefits, and should be a serious boon to most borrowers, who can look forward to things like waived interest over and above the monthly payment and a lower disposable income formula. High-income borrowers should continue to be wary, however, because SAVE has no cap just as its predecessor.
This newest plan touts a lot of benefits, and should be a serious boon to most borrowers, who can look forward to things like waived interest over and above the monthly payment and a lower disposable income formula. High-income borrowers should continue to be wary, however, because SAVE has no cap just as its predecessor.
Thus far, student loan reforms have generally dealt with particular groups of borrowers: those in the non-profit sector, those who have been in repayment for 10+ years, those defrauded by for-profit colleges, etc. It has not, largely, addressed the issue of the higher education affordability crisis.