To Our Customers
Last Updated August 2024
MOHELA is Here to Help Student Loan Borrowers Manage Repayment
As the federal contractor that services your federally owned loans on behalf of the U.S. Department of Education (ED), Office of Federal Student Aid (FSA), MOHELA is here to help you manage the repayment of your federal loans.
With over 40 years of experience in the student loan industry, we are dedicated to helping the borrowers that we serve. We understand that navigating the federal student loan program can be overwhelming and confusing - and we are here to help. From answering account questions and helping you explore your benefits and repayment options, to processing the payments you make on your government owned loans on your behalf, our experienced customer service team is here to support and empower you as you navigate your repayment journey.
Below are some of the most frequently asked questions by borrowers that may be helpful to you. We also offer online resources 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.
Frequently Asked Questions
Who owns my federal loan?
As the owner of all federal loans, FSA 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.
What is MOHELA's role as student loan servicer?
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 that if your circumstances change during your repayment period, we can best help you navigate your payment options.
Does MOHELA profit from my student loan payment?
No. Any payments made by student loan borrowers on the principal or interest of their loans are paid directly to the federal government as the owner of the loan.
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 available to borrowers within the federal student loan program. These plans and programs are administered by FSA. As a federal contractor, MOHELA works under the direction of FSA to help you enroll in repayment options programs and manage the repayment of your federal loans.
Who sets the interest rates on federal loans, and how are they paid?
Interest rates on federal student loans are set by the federal government. The federal government is paid the interest on your loans as the owner of your loan.
How do I explore my repayment options online?
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.
What is the latest status of Return to Repayment being led and implemented by FSA?
MOHELA's experienced customer service team has been working diligently to help the borrowers that we serve navigate repayment of their federal loans after the U.S. Congress lifted the federally implemented pandemic-related payment pause in October 2023. We continue to assist borrowers now during FSA's temporary on-ramp period, which runs through Sept. 30, 2024.
How did MOHELA assist borrowers during return to repayment last fall?
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 as they resume repayment on their federal loans - 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.
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.
What was MOHELA's role in the Public Service Loan Forgiveness (PSLF) Program?
MOHELA operated as the interim PSLF servicer on behalf of the government from July 1, 2022 to May 1, 2024. The U.S. Department of Education (ED) has since transitioned the servicing of the PSLF Program from MOHELA to ED via StudentAid.gov.
How did MOHELA assist borrowers while operating as the interim PSLF servicer?
While operating as the interim PSLF servicer, MOHELA processed nearly $50 billion in loan forgiveness for nearly 700,000 borrowers (80% of the total 857,000 borrowers who have received PSLF forgiveness throughout the history of the program) at the direction of FSA - the highest number of forgiveness processed in the history of the program. In contrast, directly prior to MOHELA becoming the interim PSLF servicer, only about 165,000 borrowers had received $10.5 billion in loan forgiveness during the previous five-year period from 2017 through June 2022.