MOHELA: Student Loan Servicer & How It Manages Your Federal Loans

Learn about MOHELA, the current student loan servicer for many federal borrowers. Discover how MOHELA manages your loans, how to make payments, and the services they offer for loan repayment and forgiveness.

If you’ve recently received notification that your federal student loan has been transferred to MOHELA, you’re likely wondering what to expect from this loan servicer and how they can help you manage your student loan repayment. MOHELA, which stands for the Missouri Higher Education Loan Authority, is one of the Department of Education’s most trusted loan servicers.

In this article, we’ll explore who MOHELA is, the services they provide, how you can make payments, and what steps you need to take to stay on top of your loan repayment. Whether you are new to MOHELA or are simply seeking guidance on how to manage your loan through this servicer, this comprehensive guide will cover all the essential information you need.

What Is MOHELA?

MOHELA is a non-profit loan servicer contracted by the U.S. Department of Education to manage federal student loans. The organization handles a wide variety of services, from processing payments and managing repayment plans to providing guidance on loan forgiveness options like Public Service Loan Forgiveness (PSLF).

MOHELA is responsible for a significant portion of federal student loan accounts, especially following the transition from FedLoan Servicing and other servicers. If you’re one of the borrowers whose loans have been transferred to MOHELA, it’s important to understand how to manage your account, make payments, and navigate the services they provide.

Services Offered by MOHELA

1. Loan Repayment Plans

MOHELA offers several repayment plans to suit your financial situation. The goal is to make repayment more manageable by adjusting the terms based on your income, loan balance, and other factors. The available plans include

  • Standard Repayment Plan: Fixed monthly payments over 10 years.
  • Graduated Repayment Plan: Payments start low and increase every two years.
  • Income-Driven Repayment Plans (IDR): Payments are based on your income and family size. This includes:
    • Income-Based Repayment (IBR)
    • Pay As You Earn (PAYE)
    • Revised Pay As You Earn (REPAYE)
    • Income-Contingent Repayment (ICR)

MOHELA also helps you apply for Income-Driven Repayment (IDR) plans, which can lower your monthly payments and extend your loan term.

2. Loan Forgiveness Programs

MOHELA is also responsible for managing loan forgiveness programs. If you qualify for Public Service Loan Forgiveness (PSLF), MOHELA will track your payments and ensure that they count toward your forgiveness goal. Other forgiveness programs, such as Teacher Loan Forgiveness or Income-Driven Repayment (IDR) forgiveness, may also be handled through MOHELA.

MOHELA provides guidance and documentation for these programs, including the Employment Certification Form that you need to submit annually for PSLF.

3. Payment Options

MOHELA offers various methods for making loan payments, including

  • Online Payments: You can easily make payments by logging into your MOHELA online account.
  • Automatic Payments: Set up auto-debit to have your monthly payment automatically deducted from your bank account. Setting up automatic payments can also lead to a 0.25% interest rate reduction.
  • Phone Payments: You can make payments over the phone by contacting MOHELA’s customer service.
  • Mail Payments: You can send checks or money orders to MOHELA’s mailing address.

4. Loan Consolidation

If you have multiple federal loans, MOHELA offers loan consolidation services, allowing you to combine your loans into a Direct Consolidation Loan. This process can simplify your payments by giving you one loan with a single monthly payment.

MOHELA will help you navigate this process and provide details on the interest rate and repayment terms. Consolidation may extend your repayment term, lowering your monthly payment but increasing the total interest paid over the life of the loan.

How to Make Payments with MOHELA

Making payments with MOHELA is straightforward. Here are the different options you can use:

1. Online Account Access

To make payments, you’ll need to log into your MOHELA account. If you don’t have an account, you can create one by visiting their website at www.mohela.com. Once logged in, you can:

  • View your loan balance
  • Make a payment
  • Set up automatic payments
  • Change your payment plan

2. Payment by Phone

If you prefer to make a payment over the phone, you can call MOHELA’s customer service at 1-888-866-4352. They can assist you with making a payment and provide guidance on any payment issues you may be facing.

3. Mail Payments

If you prefer to send a physical check or money order, you can mail your payment to MOHELA’s address. Be sure to include your loan number with your payment to ensure it is processed correctly. You can find the mailing address by logging into your MOHELA account or checking your monthly statement.

How to Contact MOHELA for Support

If you need assistance or have questions about your loan, MOHELA provides several ways to contact them:

1. Phone Support

  • MOHELA Customer Service: 1-888-866-4352
  • Hours of Operation: Monday through Friday, 8:00 AM to 9:00 PM (Eastern Time)

2. Online Support

You can also reach out to MOHELA’s support team through their website:

  • Visit their Help Center at www.mohela.com for FAQs and troubleshooting.
  • Submit a support ticket for personalized assistance.

3. Mail Support

For physical correspondence, you can mail documents or letters to:

  • MOHELA
    P.O. Box 69184
    Harrisburg, PA 17106-9184

FAQs

Visit www.mohela.com, click on “Log In” at the top right corner, and enter your account credentials. If you don’t have an account, you can create one from the login page.

Yes, MOHELA offers Direct Consolidation Loans. This allows you to combine multiple federal loans into one, simplifying your repayment process.

If you qualify for Public Service Loan Forgiveness (PSLF) or another forgiveness program, you can submit the Employment Certification Form (ECF) to MOHELA for verification. MOHELA will track your payments toward forgiveness.

Yes, you can set up automatic payments through your MOHELA online account. Automatic payments can lower your interest rate by 0.25%.

If you’re having trouble making payments, you should contact MOHELA customer service. They can help you explore options like Income-Driven Repayment (IDR) plans, deferment, or forbearance.

Conclusion

MOHELA is an important player in the management of your federal student loans. By offering a variety of services like repayment plans, loan consolidation, and loan forgiveness assistance, MOHELA ensures that you have the tools you need to stay on track with your loans. If you have questions or need help, remember that MOHELA’s customer support is available to assist you through phone, online, and mail channels.

By staying in contact with MOHELA and regularly checking your loan details, you can make your repayment process easier and ensure you’re on the right path toward loan forgiveness.