• Alex Kreis

Are Your Student Loans Being Transferred?



As account transitions are underway from FedLoan to MOHELA, here’s some information you should know:


Let’s start with the basics. With FedLoan announcing it will not renew its contract with the federal government, some student loan borrowers with federal public student loan forgiveness accounts will be transferred to MOHELA. The transition is occurring in waves with some borrowers already in the process.


If you have loans that will be transferred, existing terms, conditions, interest rates, loan discharge or forgiveness programs, or available repayment plans on the loans will not be changed. The only responsibility a borrower has during the transition is to:

  • Read letters and emails from servicers – FedLoan is expected to send out notices at least 15 days before the transfer occurs.

  • Keep an eye out for a welcome notice from MOHELA followed by the availability of your full account details no later than 10 business days after the loan transfer date listed in the FedLoan transfer notification.

  • Update your account information and check your payment count – make sure there are no discrepancies.


If you have recently been transferred and have questions about loan forgiveness options and eligibility, contact the servicer directly for guidance.


If you are wondering about receiving student loan forgiveness through MOHELA, be aware that there isn’t a specific MOHELA student loan forgiveness program. Rather, MOHELA will now oversee your eligibility for the Department of Education’s PSLF program.


For those pursuing PSLF with the requirements met, submit an official application to MOHELA who will process the request and review your student loan account, employment history, and repayment records. If you are approved, your account will be updated accordingly.


Sources:

1. https://www.cnbc.com/2022/07/18/borrowers-pursuing-public-service-loan-forgiveness-to-get-new-servicer.html

2. https://www.forbes.com/advisor/student-loans/mohela-student-loan-forgiveness/

3. https://www.cnn.com/2022/06/27/politics/fedloan-mohela-new-student-loan-servicer/index.html


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