Student Loan Debt Relief Plan
On Aug. 24, 2022, the Biden-Harris Administration announced a Student Debt Relief Plan that includes one-time student loan debt relief targeted to low- and middle-income families.
The U.S. Department of Education will provide up to $20,000 in debt relief to Federal Pell Grant recipients and up to $10,000 in debt relief to non-Pell Grant recipients. Borrowers with loans held by U.S. Department of Education are eligible for this relief if their individual income is less than $125,000 (or $250,000 for households). Nearly 8 million borrowers may be eligible to receive relief automatically because relevant income data is already available to the U.S. Department of Education. If the U.S. Department of Education doesn't have your income data, the Administration will launch a simple application which will be available by early October. Once a borrower completes the application, they can expect relief within 4-6 weeks. Borrowers are advised to apply before November 15th in order to receive relief before the payment pause expires on December 31, 2022.
To learn more about the Student Loan Debt Relief Plan and review Frequently Asked Questions, please visit Studentaid.gov/debt-relief-announcement.
PSLF Waiver Offers Way to Get Closer to Loan Forgiveness
On Oct. 6, 2021, the U.S. Department of Education (ED) announced a change to Public Service Loan Forgiveness (PSLF) program rules for a limited time as a result of the COVID-19 national emergency. Now, for a limited period of time, borrowers may receive credit for past periods of repayment that would otherwise not qualify for PSLF. Check mohela.com/pslfwaiver.
Income-Driven Repayment and Public Service Loan Forgiveness Program Account Adjustment
U.S. Department of Education (ED) revealed several changes and updates that will bring borrowers closer to forgiveness under income-driven repayment (IDR) plans. ED will begin work on implementing these changes immediately, but borrowers will not see the effect in their accounts until fall of 2022. Learn more at mohela.com.
Public Service Loan Forgiveness Servicer
Beginning July 2022, MOHELA will transition to become the student loan servicer for Public Service Loan Forgiveness (PSLF). Borrowers pursuing PSLF whose loans are serviced by FedLoan Servicing will transfer to MOHELA. Learn more about the transition of Public Service Loan Forgiveness.
We appreciate your patience during the transition period.
Check mohela.com/covid19 for information regarding student loan payments restarting, updates about student loan processing, and COVID-19.
New Message For Borrowers Serviced by MOHELA:
COVID-19 emergency relief for federal student loans held by the Department of Education has been extended through December 31, 2022. Visit StudentAid.gov/coronavirus for updates.
During this time no interest is accruing. In addition, no payment will be due until after the payment pause ends, unless you opted out of the forbearance (payment pause).
Welcome Recently Transferred Borrowers!
Have you recently received notification that your loans will be transferring to MOHELA? Get more information about the transfer.