Mohela Qdr (2024)

FAQs

Is MOHELA student loan going to be forgiven? ›

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.

Your federal student loan is being serviced by MOHELA on behalf of Federal Student Aid (FSA). With over 40 years in the student loan servicing industry, we have the expertise to help manage your loans – answer any account questions, help you explore your benefits and repayment options and process your payments.

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.

After you graduate college or drop below half-time enrollment and following any applicable grace period, you are responsible for making your regular monthly payments.

If you have loans that have been in repayment for more than 20 or 25 years, those loans may immediately qualify for forgiveness. Borrowers who have reached 20 or 25 years (240 or 300 months) worth of eligible payments for IDR forgiveness will see their loans forgiven as they reach these milestones.

The lawsuit is brought under the District of Columbia's Consumer Protection Procedures Act (CPPA), which prohibits unfair or deceptive trade practices, and seeks to stop MOHELA from continuing its harmful servicing practices. AFT sued MOHELA under the DC CPPA in DC court on behalf of its members and the general public.

If you're unsure if your loan is federal or private, log into your lender's account — or the place you make your monthly payments. The current federal student loan servicers are: HESC/Edfinancial. MOHELA.

MOHELA administrative forbearance

Others received bills with incorrect payment amounts. As a result, the Education Department instructed MOHELA to put affected borrowers into an administrative forbearance until the issue was resolved.

Federal student loans can remain on your credit report indefinitely until they're paid off —- there is no statute of limitations. Defaulted student loans from private lenders may fall off your credit report after seven years.

The accusations against the Missouri Higher Education Loan Authority, better known as MOHELA, were laid out in a 47-page report released Wednesday by the American Federation of Teachers and the Student Borrower Protection Center, which alleged four in 10 of MOHELA's borrowers have been affected by “servicing failures,” ...

Does MOHELA own my student loan? ›

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.

Find information about loan servicers that have announced plans to stop servicing federal student loans: MOHELA System Transition. Edfinancial. All accounts have been successfully transitioned to Edfinancial's new loan servicing platform.

To clarify, MOHELA doesn't have any exclusive student loan forgiveness programs. But MOHELA borrowers may be eligible for federal loan forgiveness programs through the PSLF program or income-driven repayment plans. Here's what you need to know about your MOHELA loan forgiveness options.

Acceptable forms of income documentation include: Paystub or wage statement.

It's free to apply! Applying and being approved by MOHELA for scheduled automatic payments to be electronically debited from your banking institution may qualify you for a 0.25% interest rate reduction. Not all lenders offer the 0.25% interest rate reduction (subject to conditions).

If you have Direct Loans and have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer, you may be eligible for PSLF or TEPSLF. Before you apply, however, it can help to confirm that your employer is qualified for the program.

MOHELA, a U.S. Department of Education servicer, is here to help walk you through all available repayment plans and options at no cost to you. So, you never have to pay for assistance with your student loans.

Am I still eligible for PSLF? Yes, under the temporary changes you are eligible for PSLF but you must apply before October 31, 2022.

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.