Notice of Change in Reporting
MOHELA constantly strives to meet the highest standards relative to all aspects of the student loan servicing process, including credit reporting. In
that regard, we are writing to advise you of a change in our credit reporting policies that may affect you.
On a monthly basis, MOHELA furnishes information regarding the student loans it services to the consumer reporting agencies in accordance with national industry
standards. These standards provide that MOHELA must report to the consumer reporting agencies the “current balance” on each student loan, which includes a
principal component, as well a component consisting of interest and fees (“interest”).
Description of the Change. For loans as to which interest has accrued, MOHELA had been excluding such interest from the “current
balance” that was reported to the consumer reporting agencies. However, MOHELA has recently determined that all accrued interest for such loans should be
included, along with the principal outstanding, in the “current balance” for those loans. As a result of this determination, MOHELA has started the process of
including such accrued interest, as well as the principal balance outstanding, in the “current balance” reported to the consumer reporting agencies for all
loans, in accordance with the applicable national industry standards.
Potential Impact of Change. If your loan has accrued interest, this change may result in an increase in the amount reported to the
consumer reporting agencies as the “current balance” on your loan. It is possible that this reporting change may cause a change in your credit score as
determined by the consumer reporting agencies, based on the higher reported current balance. It is important to note that MOHELA is a different entity than
the consumer reporting agencies and, therefore, we have no control over the method used by them to determine your credit score based on the information we
provide to them.
We apologize for any inconvenience that this change may cause.
If you have any questions about MOHELA’s credit reporting on your account, please do not hesitate to contact MOHELA’s Customer Advocacy Team at 866.820.8542.