• To Our Customers

    Last Updated March 2024


    MOHELA is Here to Help Federal Student Loan Borrowers Return to Repayment

    For Borrowers with Loans Owned by the U.S. Department of Education, Office of Federal Student Aid (FSA)

    As millions of federal student loan borrowers return to repayment after the U.S. Congress lifted the federally implemented pandemic-related payment pause in October 2023, MOHELA is here to help you navigate your repayment journey as the federal contractor that services your federally owned loans on behalf of the U.S. Department of Education, Office of Federal Student Aid (FSA).

    As we continue to help borrowers during the temporary on-ramp period, which was established by FSA and runs through Sept. 30, 2024, below are some of the most frequently asked questions by borrowers that may be helpful to you. We also offer online resources and services to best assist you and make your student loan account management easy. Visit our Resource Center here.

    We look forward to continuing to assist you through the return to repayment on-ramp period and beyond.


    Frequently Asked Questions


    Who owns my federal loan?  
    All federal loans are owned by the U.S. Department of Education, Office of Federal Student Aid (FSA). As the owner of all federal loans, the U.S. Department of Education, Office of Federal Student Aid manages the federal student loan programs. MOHELA is contracted by FSA to help borrowers manage repayment of their federally owned loans. As a federal contractor, MOHELA follows FSA requirements that dictate the assistance provided to FSA borrowers.


    How is MOHELA involved with my loan?  
    MOHELA is a nonprofit loan servicer with 40 years of experience and a track record of providing exceptional customer service to the borrowers that we serve. As a federal contractor for FSA, we are here to help you with the servicing of your federal student loans - at no cost to you. Our role includes, but is not limited to, managing your billing statements, processing your requests for new repayment options, and other processes, such as updating your loan information based on enrollment information from your school. Keep your contact information up to date so we can help you stay on track with repaying your loans. If your circumstances change during your repayment period, we are here to help you navigate your payment options.


    What is the latest status of the return to repayment? 
    Over the past several months, MOHELA's experienced customer service team has been working diligently to help the borrowers that we serve navigate repayment of their federal loans. In 2023, MOHELA was proud to assist more than six million borrowers in their return to repayment. Our dedicated customer service team has been there to help borrowers - facilitating over 3.1 million customer service calls, and processing more than 2.36 million Income-Driven Repayment Plan applications and over 2.58 million payments to the federal government on behalf of borrowers throughout 2023. Learn more about MOHELA's work to assist borrowers here.


    Who designs the repayment plans and parts of the student loan programs, and how are they administered? 
    The federal government, as the owner of the loans, creates the repayment plans, Public Service Loan Forgiveness (PSLF) and other forms of loan forgiveness. These plans and programs are administered by the Office of Federal Student Aid (FSA). As a federal contractor, MOHELA works under the direction of FSA to handle services on your federal loans.


    When are billing statements typically sent?
    During a regular billing cycle, MOHELA sends statements for payments due at least 21 days prior to the due date. Please note that billing information is always available on mohela.com, through our interactive voice response system, and our customer service center. It's important that you keep your contact information updated so we can send you your billing statements and other important account notifications that will help you manage your federal loans.


    How are processing forbearances handled, and what transactions are processed during this period?
    When directed by FSA, MOHELA may place loans in a processing forbearance for up to 60 days. Typically, interest continues to accrue during this period and does not qualify for forgiveness under the Public Service Loan Forgiveness (PSLF) or income-driven repayment (IDR) plan programs. 

    For some groups of borrowers impacted by processing activities just prior to and during the initial return to repayment, FSA directed MOHELA to place certain borrowers into forbearance, while also keeping the interest rate at 0% and ensuring the months on the forbearance count toward the PSLF and IDR forgiveness programs. 


    What is the SAVE Repayment Plan, and how were loans recalculated from REPAYE to SAVE?
    Loans participating in the Revised Pay As You Earn (REPAYE) plan were recalculated to the Saving on a Valuable Education (SAVE) plan. Under direction from FSA, MOHELA worked with FSA to modify recalculations and notify borrowers whose payment amounts changed or if other action was necessary. 


    What is the PSLF Program, and how is my request for PSLF processed?
    The Public Service Loan Forgiveness (PSLF) Program forgives the remaining balance on your Direct Loans after you have made 120 qualifying payments while working full-time for a qualifying employer. After you submit a PSLF Form and FSA considers your employer to be eligible and you have at least one qualifying loan, your employer and employment information will be provided to FSA. Once FSA determines that your cumulative total of qualifying payments reaches 120 for your loan(s), FSA will notify MOHELA to process your forgiveness. The final decision about whether an eligible applicant receives forgiveness is made solely by FSA as the owner of the loan. MOHELA does not have the authority to process loan forgiveness until final authorization is provided by FSA. As the request can take several months for FSA to review, we appreciate your patience. Please visit studentaid.gov for PSLF and TEPSLF information. 


    How much Public Service Loan Forgiveness did MOHELA process?
    In total, from the time MOHELA became the PSLF servicer, summer of 2022 through February 2024, MOHELA processed nearly $48 billion in PSLF loan forgiveness at the direction of FSA for over 660,000 borrowers. This means that on behalf of FSA, we have processed forgiveness for approximately 75% of the borrowers who have received PSLF forgiveness under the Biden-Harris Administration.


    Does MOHELA decide who receives Public Service Loan Forgiveness or when they receive it?
    Loans that are eligible and qualified for PSLF forgiveness are provided to MOHELA by the U.S. Department of Education's Office of Federal Student Aid (FSA) for final processing and approval. MOHELA does not have the authority to process loan forgiveness until authorization is provided by FSA, which may take weeks or months to occur.  As an eligible PSLF employer ourselves, the public servants at MOHELA are dedicated to helping borrowers through the PSLF process. We're as excited as our customers when they receive forgiveness, after meeting the eligibility requirements!


    Does MOHELA determine PSLF counters/periods toward loan forgiveness? 
    The U.S. Department of Education's Office of Federal Student Aid (FSA) provides MOHELA with the eligible and qualified periods/counts for the PSLF limited Waiver, the Income Driven Repayment One-Time Adjustment, and any other FSA waiver or adjustment. MOHELA does not have the authority to update these counters until the information is received from FSA, which may take one or more months to occur. 


    Who sets the interest rates, and how are they paid?
    Interest rates are set by U.S. Congress. The federal government is paid the interest on your loans as the owner of your loan. MOHELA does not receive funds or fees relative to interest rates.


    How are payments processed, and who handles them?
    MOHELA does not process payments. Another federal contractor receives mailed payments, while payments made by phone, through mohela.com, or Auto Debit are sent directly to the government for processing. MOHELA receives files with the payment information to apply to borrower loans. 


    How are refunds processed, and who handles them?
    MOHELA initiates the request to the government for approved refunds. The government sends refunds through the Automated Clearing House (ACH) or by check.  


    Do you need help with repayment? We have tools to help!
    Log into your online account to explore repayment plan options or visit StudentAid.gov/loan-simulator to see which plans and options work best for you.