The previous servicer, PHEAA, had been accused of mismanaging accounts and preventing borrowers from receiving loan forgiveness.
Some of these borrowers can now reapply for forgiveness through a PSLF waiver.
You’ll be notified before and after your account is transferred.
Then, you’ll receive instructions on how to log into your new MOHELA account.
Some federal student loan borrowers already saw their loans transferred toAidvantage, EdFinancial and Nelnet.
A number of other changes are expected for federal loan borrowers in the coming period.
On Aug. 31, thefederal loan payment pauseis slated to end.
For those enrolled in PSLF who were previously rejected for forgiveness,Oct.
Why are my student loans moving?
When will your student loans be transferred?
FedLoan Servicing has started transitioning its student loans to MOHELA and will continue through the rest of the summer.
You may have already been notified of the change.
Federal Student Aid will also notify you before and after your student loans are moved.
Your current loan rates, terms, conditions, repayment plans and discharge status will remain the same.
What about your student loan forgiveness status?
Your current payment history will be transferred to MOHELA and count toward your120 qualifying loan forgiveness payments.
For example, your loans might transfer to MOHELA in July before you receive student loan forgiveness in August.
Will the PSLF waiver deadline be extended?
The Oct. 31 deadline to apply for the PSLF waiver is quickly approaching.
Applying as soon as possible is recommended, especially if you have to consolidate your loans first.
You should consolidate by the beginning of September to give yourself enough time to apply for the waiver.
What other changes are happening with student loan payments and forgiveness?
More than1.6 million borrowers have had their student loans forgiven, totaling over $32 billion, since 2021.
And while President Joe Biden campaigned onwidespread student loan forgiveness, this promise has seen no real traction.
